Audio Pixels Holdings Limited (ASX:AKP) Issues A$1 Million Convertible Note
Convertible Note Issuance
Audio Pixels Holdings Limited (ASX:AKP) announced the issuance of a A$1,000,000 Convertible Note to a sophisticated investor, aimed at allowing the company to explore capital management and other potential opportunities without time constraints. The investor does not hold any key relationship with the company, ensuring independence from related parties and significant stakeholders.
Details of the Convertible Note
The Convertible Note features a term extending until 31 December 2025, is unsecured, and carries a 12% per annum interest rate, capitalised until full repayment or conversion. The conversion price is set at A$9.04, though it may decrease if the company chooses to conduct a share placement before the maturity date, with a price floor established at A$5.00. Additionally, the investor will receive 200,000 unlisted options with a strike price of A$10.84, which expire on 4 May 2027. This note issuance is consistent with terms from a prior issuance dated 5 September 2024.
Executive Comments
Fred Bart, the CEO of Audio Pixels Holdings, stated, “This funding allows us to strategically pursue growth opportunities while enhancing our capital structure.” The issuance has been confirmed to comply with ASX Listing Rule 7.1, adhering to the company’s 15% placement capacity guidelines.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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