Audio Pixels Holdings Limited Announces Convertible Note Funding
AUDIO PIXELS HOLDINGS LIMITED (AKP) Share Update November 2024 Wednesday 20th
Audio Pixels Secures A$1 Million Convertible Note Funding
Audio Pixels Holdings Limited (ASX: AKP) has successfully issued a A$1 million Convertible Note to a sophisticated investor, providing the company with financial flexibility for future opportunities.
Instant Summary:
- A$1 million Convertible Note issued to a sophisticated investor.
- Investor is not a related party or key management personnel.
- Convertible Note falls within the company's 15% placement capacity under ASX Listing Rule 7.1.
- Convertible Note terms include a 12% annual interest rate and a conversion price of A$9.04.
- 200,000 unlisted options issued with a strike price of A$10.84, expiring on 4 May 2027.
Convertible Note Details
Audio Pixels Holdings Limited has announced the issuance of a Convertible Note worth A$1 million to a sophisticated investor. This strategic move is designed to give the company the financial flexibility needed to explore capital management and other potential opportunities without the pressure of time constraints.
The company has assured that the investor is not a related party, key management personnel, substantial holder, advisor, or associate of any of these groups. This ensures that the transaction is independent and in compliance with the ASX Listing Rule 7.1, which limits the issuance of equity securities to 15% of the company's fully paid ordinary securities within a 12-month period without shareholder approval.
Terms of the Convertible Note
The Convertible Note is unsecured and carries an interest rate of 12% per annum, which will be capitalized until it is either fully repaid or converted into shares. The conversion price is set at A$9.04 per share, with a floor price of A$5.00, allowing for conversion at a lower price if the company undertakes a placement of ordinary shares before the note's expiry on 31 December 2025.
Options and Strategic Implications
In addition to the Convertible Note, the investor will receive 200,000 unlisted options, with a strike price set at 20% above the conversion price, equating to A$10.84. These options will expire on 4 May 2027, providing the investor with a potential future stake in the company.
This funding initiative mirrors a similar issuance made on 5 September 2024, indicating a consistent strategy by Audio Pixels to leverage convertible notes for financial growth and stability.
The issuance of this Convertible Note is a positive step for Audio Pixels, as it provides the necessary capital to pursue strategic opportunities. The 12% interest rate and conversion terms are favorable for the company, potentially enhancing its financial position. The market may view this as a sign of confidence in the company's future prospects, potentially boosting investor sentiment.
Investor Reaction:
Analysts are likely to view this funding move as a strategic decision to strengthen the company's financial base. The independence of the investor and the alignment with ASX regulations may reassure investors about the company's governance and strategic direction.
Conclusion:
Investors should consider the potential long-term benefits of this funding initiative for Audio Pixels. The company's ability to capitalize on new opportunities without immediate financial pressure could lead to significant growth and innovation in the digital loudspeaker market.