Sprintex Ltd (ASX:SIX) has secured A$3,121,000 by way of an issue of convertible notes subscribed for by the directors of the company to the value of A$300,000, and two substantial shareholders to the value of A$600,000, with the remainder picked up by sophisticated and professional investors.
The funds raised through the issue of the convertible notes will be channelled into working capital, aimed mainly at allowing the company to capitalise on commercialising e-compressor sales opportunities.
Funds available as a loan
All the convertible notes subscribed for by the directors, substantial holders and investors will be issued subject to the company obtaining shareholder approval at an upcoming general meeting planned to be held on March 13, 2023.
Under the terms of the convertible note deeds, until shareholder approval is obtained the funds paid by the subscribers shall be available to be used immediately by the company as a loan.
In the event that shareholder approval is not obtained, the funds will be repayable in cash by the company to the subscribers.
Each convertible note will have a conversion price of A$0.075 per fully paid ordinary share if converted on or before July 31, 2023, or the lower of A$0.075 per share and a 10-day VWAP at a 20% discount to the market price for the company’s shares at the date of the conversion if the convertible notes are converted after July 31.
Of the A$2,221,000 worth of convertible notes to be issued to the investors, A$1,622,500 worth of convertible notes will be for investors introduced by 180 Market Pty Ltd and MMR Corporate Services Pty Ltd.
A further $100,000 worth of convertible notes will be issued to investors introduced by CFAS Advisory and $498,500 worth of convertible notes will be issued to investors who were introduced by CNW Capital Service Limited.
Broker options
The company will pay the brokers a fee of 8% of the funds raised, on a pro-rata basis, under the convertible note issue and 9,871,111 options to acquire shares with an exercise price of $0.075 and an expiry date of December 31, 2024.
In addition, the company will also issue MMR Corporate Services Pty Ltd a further 3,000,000 options on the same terms as the broker options for introducing the company to 180 Market Pty Ltd.
The broker options and the MMR options will be issued subject to the company obtaining shareholder approval, at the upcoming general meeting planned to be held on 13 March 2023.