Chariot Corporation Ltd (ASX:CC9) Raises Up to A$2 Million via Convertible Notes
Convertible Note Financing
Chariot Corporation Ltd has entered into a convertible note agreement to raise up to A$2.0 million through the issuance of convertible notes. The company has secured an initial drawdown of A$600,000, with additional drawdowns of up to A$1.4 million available within 12 months. Each note carries a face value of US$1.15 and is convertible at A$0.14 per note, with a maturity of 12 months from issuance.
Redemption and Conversion Terms
Chariot may redeem the notes at any time prior to maturity at an agreed premium to the face value. There is a non-conversion period until 1 June 2025, after which investors can convert the notes into shares at any time. The convertible note facility provides capital flexibility to advance exploration projects while limiting dilution compared to a standard equity capital raising.
Executive Comments
Managing Director Shanthar Pathmanathan said, “Obsidian’s convertible note facility provides us with capital flexibility that will assist us in advancing our exploration projects while limiting the dilution that would occur from a standard equity capital raising in this extremely challenging lithium market. We look forward to utilizing this funding to create additional value for shareholders.”
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 recommended BHP Group. 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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