Peninsula Issues 21 Million Shares to Convert US$4.2 Million Loan, Eyes US$30M Drawdown
Peninsula Energy has extinguished its convertible loan debt with Adare Finance by issuing over 21 million shares and is positioned to draw down a new US$30 million convertible note facility, subject to conditions.
- Final US$4.2 million convertible loan fully converted
- 21 million shares issued to lender's nominee
- Outstanding debt to Adare Finance reduced to zero
- New US$30 million senior secured convertible note facility pending drawdown
- Drawdown subject to conditions precedent by 31 July 2026
Final Debt Conversion Clears Peninsula’s Convertible Loan
Peninsula Energy (ASX:PEN) has completed the final step in extinguishing its convertible loan facility with Adare Finance, an affiliate of Davidson Kempner, by converting US$4.21 million of debt into equity. The transaction saw the issuance of 21,084,101 ordinary shares to the lender’s nominee, effectively wiping out Peninsula’s outstanding balance under this facility.
The conversion price was adjusted to A$0.2896 per share, reflecting terms triggered by the company’s recent equity raise announced in May 2026. The use of the AUD/USD exchange rate on the day ensured the share issuance aligned with prevailing currency conditions.
New US$30 Million Convertible Note Facility Awaits Drawdown
Separately, Peninsula has secured a US$30 million senior secured convertible note debt facility with SP Financing 1 Pty Limited, linked to the Soul Patts group. This facility, announced earlier in June, remains subject to customary conditions precedent that must be satisfied before the drawdown deadline of 31 July 2026.
This fresh injection of capital is intended to support the ongoing ramp-up of production at Peninsula’s Lance Uranium Operation in Wyoming, a project that resumed yellowcake production in September 2025 and is progressing under a revised operational plan.
Capital Structure and Production Ramp-up in Focus
With the Adare Finance debt now fully converted, Peninsula’s balance sheet sees a reduction in debt obligations, albeit with some dilution due to the share issuance. The new convertible note facility with Soul Patts, if drawn, would provide significant liquidity to fund the company’s uranium production ambitions amid a supportive US jurisdiction.
Investors will be watching closely how Peninsula manages the conditions precedent for the Soul Patts facility and whether the additional debt capital will accelerate the Lance Project’s path to full production capacity.
Bottom Line?
Peninsula’s extinguishment of its convertible loan facility clears a debt overhang, but the pending drawdown of a larger convertible note facility will be pivotal for funding its uranium production growth.
Questions in the middle?
- Will Peninsula meet the conditions precedent to draw down the US$30 million facility by July 31?
- How will the share dilution from the final loan conversion affect shareholder sentiment?
- What impact will the new debt facility have on Peninsula’s production ramp-up timeline at Lance?
