Betolar issues €3M in convertible capital notes to fund Otanmäki tailings deal
Finnish materials company Betolar will issue €3 million in convertible capital notes, with current major shareholders Ajanta Innovaatiot 2 Ky, Ilmarinen Mutual Pension Insurance Company, and Nidoco AB each taking €1 million.
The Board approved the offering on June 23, 2026. Betolar is also negotiating a €3 million term loan with Danske Bank, maturing in November 2028, and plans a tap issuance of €3 million in further notes.
The financing funds a long-term supply deal, announced the same day, that gives Betolar exclusive rights to tailings from Otanmäki Mine Oy.
The Otanmäki site holds roughly 10 million tonnes of titanium-rich tailings — a raw-material source for Betolar's metal extraction technology.
Upfront costs from the supply deal, technology development, and new critical-infrastructure solutions prompted the raise. The company says it strengthens its balance sheet and secures working capital.
The notes carry a steep 10% annual interest rate, rising to 15% after the reset date. Interest is capitalised to the principal unless Betolar pays in cash.
The conversion price is set at €2.10 per share — a roughly 79.66% premium to the €1.17 average price over the 10 prior trading days. Investors only convert if shares climb well above current levels.
The notes are unrated, unsecured, and perpetual, signalling the cost of capital for a small scaleup pursuing a capital-intensive project.
Betolar built its name turning industrial side streams into eco-friendly construction materials, and the Otanmäki deal extends that side-stream playbook from cement substitutes into critical-metal extraction. With long-term backers like Ilmarinen Mutual Pension Insurance Company anchoring the notes, the early-stage company is leaning on patient capital to fund a far more capital-intensive pivot.
Read more: MarketScreener
Image credit: "Thompson Creek Mine Tailing Pond" by Sam Beebe is licensed under CC BY 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/2.0/.
