International Graphite and Comet strike win-win deal on funding and director appointments [Video]

International Graphite Ltd (ASX:IG6) and its major shareholder Comet Resources Ltd have negotiated a transaction that resolves speculation around the short-to-medium term security of International Graphite shares owned by Comet.

Preventing sell down

The arrangements will prevent the short-to-medium-term potential sell-down of any of the 40 million International Graphite shares owned by Comet when the stock is released from ASX escrow on April 7.

The deal involves International Graphite agreeing to loan Comet $1.5 million and Comet granting International Graphite the right to appoint a majority of directors to the Comet board.

The Comet loan has a two-year maturity and accrues interest at 10% per annum. It includes customary terms for a facility of this kind including change of control protections for International Graphite.

Win-win for shareholders

International Graphite Chairman Phil Hearse said the directors of both companies were unanimous in their belief that the new arrangements were a win-win for all shareholders.

“International Graphite shares are a major asset …