Audio Pixels Holdings Limited (ASX:AKP) Advances Operations and Issues $2M Convertible Notes Amid ASX Suspension
Operational Progress
Audio Pixels Holdings Limited has made significant strides in advancing its Digital Sound Reconstruction technologies towards mass production. The company is collaborating with its primary MEMS vendor to achieve the critical “Process Freeze” milestone, ensuring a standardized and scalable fabrication process. Key activities include redesigning and fabricating the GEN-II high-voltage mixed-signal controller, enhancing chip assembly and packaging for improved performance and reliability, mitigating supply chain risks, and expanding its intellectual property portfolio with groundbreaking innovations.
Convertible Notes Issuance
In November and December 2024, Audio Pixels issued an additional $2,000,000 in convertible notes to sophisticated investors. These notes have a maturity date of December 31, 2025, and an interest rate of 12% per annum, capitalised until repayment or conversion into shares. Investors can convert the notes to ordinary shares at $9.04 or a lower price if a share placement occurs before the expiry date, with a conversion price floor of $5.00. As an incentive, investors receive 400,000 unlisted options at a strike price of $10.84, expiring on May 4, 2027. This issuance brings the total outstanding convertible notes to $12.5 million, providing additional working capital for the company’s commercial objectives.
ASX Suspension Update
The shares of Audio Pixels remain suspended from trading on the ASX. The company has applied to lift the suspension and is actively working with the ASX to address ongoing queries related to listing rule compliance. To meet ASX requirements, Audio Pixels is holding its 2023 AGM and has responded to compliance queries concerning listing rules 3.1, 12.1, 12.2, 12.5, and 14.5. A notice of meeting for the AGM will be released shortly as the company continues efforts towards the reinstatement of its share quotation.
Motley Fool contributor Abbie Stokes 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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