Evolution Metals & Technologies shares fell 47% to $1.16 on Tuesday after Yorkville Advisors Global said the company had missed a $34.7 million payment on two convertible debentures. The fund said the default raises the interest rate to 18% and gives it the right to convert the debt into shares.
YA II PN, a fund managed by Yorkville Advisors Global, said Monday that EM&T had elected to redeem the debentures last month. The payment was due Oct. 29, with a five-trading-day cure period that expired Nov. 5, the fund said. EM&T did not pay by that deadline.
Yorkville said it intends to exercise its conversion rights and may begin selling EM&T common stock on or after the date of its release. The fund also said the company’s chief financial officer emailed it on Nov. 5 with a draft filing for an unannounced stock offering. Proceeds were to be used in part to make the $34.7 million payment, according to Yorkville.
In the email, the CFO said EM&T had decided to withdraw the offering and asked to extend the payment deadline to Nov. 27. Representatives for EM&T did not immediately respond to a request for comment.
EM&T went public Jan. 6, and its shares reached $24.09 the following day. The stock has fallen 95% this year, reaching another all-time low on Tuesday.
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