11:14 AM EST, 01/21/2025 (MT Newswires) -- (Adds analyst comment and updates shares.)

Metalla Royalty & Streaming ( MTA ) on Tuesday said Beedie Capital is increasing its stake in the company to 10.3%.

Beedie has elected to convert $1.5 million of unpaid interest under the convertible loan facility with Metalla into 412,088 shares of the company.

In addition to the share conversion, Metalla will also make a payment of $2 million on Jan. 31, reducing all outstanding accrued fees and accrued interest to zero as of the payment date.

National Bank of Canada maintained its outperform rating and $6.50 price target on the company's shares following the news.

"Metalla's portfolio consists of a mixture of cash flowing assets and soon to be producing assets, along with numerous long-dated, potentially large-scale mining projects in the hands of senior/intermediate counterparties enhancing the long-term optionality value within the portfolio," the bank said.

"With the market currently focused on FCF generation, MTA's valuation is impacted by its development-heavy portfolio, with most of its NAV in development/exploration stage, including six projects expected to begin producing within the next 15 months. A step-change in FCF should drive a re-rating in the stock," the bank added.

Metalla shares were last seen up $0.02 to $3.91 on the TSX Venture Exchange.

Price: 3.90, Change: +0.01, Percent Change: +0.26