Hamak Strategy Limited (LSE:HAMA) has agreed revised financing terms with institutional investor Yorkville Advisors, replacing the outstanding balance of its previous £2.5 million convertible loan note with a new £1.66 million non-convertible loan facility. The refinancing removes the potential for equity conversion while retaining a 4% interest rate and introducing a fixed 10-month repayment schedule.
The revised agreement also allows the company to retain a limited portion of proceeds generated through its at-the-market equity programme, providing additional flexibility to support ongoing working capital requirements.
Warrants align lender with long-term growth
As part of the refinancing package, Hamak will issue 165.8 million warrants to Yorkville Advisors. The warrants have a three-year term and an exercise price of 1p per share, representing a 54% premium to the company’s latest offer price.
If exercised in full, the warrants would generate approximately £1.66 million of additional capital. Management said the new structure removes uncertainty associated with convertible debt, improves funding visibility and aligns the lender’s long-term interests with shareholder value creation.
Financing supports exploration and Bitcoin treasury strategy
The revised funding arrangements provide Hamak with greater financial flexibility as it continues to develop its Akoko gold project and broader exploration portfolio across West Africa.
The company also intends to continue executing its Bitcoin treasury strategy, with management viewing the strengthened financing structure as better positioned to support both its mining exploration activities and digital asset objectives.
While the company’s outlook continues to be constrained by its pre-revenue status, recurring losses, ongoing cash burn and increased leverage, the removal of convertible debt represents a positive step in reducing financing uncertainty. Technical indicators remain weak, and the absence of earnings and dividend support continues to weigh on the investment case.
More about Hamak Strategy Limited
Hamak Strategy Limited is a UK-listed exploration company focused on developing gold assets across West Africa while also operating a Bitcoin-based treasury strategy. Its principal exploration activities include the Akoko gold project alongside a broader portfolio of mineral prospects in the region.
By combining exposure to natural resource exploration with digital asset treasury management, Hamak offers investors a unique blend of mining and cryptocurrency-related opportunities. The company’s performance is influenced by exploration progress, commodity markets and the volatility associated with Bitcoin holdings.
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