Netlinkz Ltd (ASX:NET) has completed the issue of 13,960,644 convertible notes with an aggregate face value of more than A$13.96 million along with 104,704,820 free attaching options as part of a convertible note offer outlined in a prospectus issued on September 17, 2020.
This issue raised $4.995 million in cash for the Virtual Secure Network (VSN) company and settled existing debts totalling $6,313,125 with the cash proceeds used to extinguish loan facilities with Lind and CST.
Each convertible note was issued at an issue price which is a 10% discount to the face value of A$1.00 and interest has been deducted up-front.
“Securing working capital”
Netlinkz executive chairman and CEO James Tsiolis said: “Netlinkz is pleased with this outcome and we have achieved our primary objective of repaying outstanding debts and securing additional working capital.
“As advised, our focus at present is securing more contracts in China, ramping up operations in India and Singapore with Natsoft and establishing a presence in new markets.
“We anticipate a number of value accretive developments occurring before calendar year end and we look forward to reporting on these as they materialise.”
The attaching options have been issued on the basis of 7.5 options for each convertible note subscribed for, with fractional entitlements rounded down, and have an exercise price of A$0.10 per option and an expiry date of two years from the date of issue.
Everblu Capital Pty Ltd acted as lead manager to the convertible note offer.
Helicopter shares issued
In addition, the company has issued 868,659 shares pursuant to the Helicopter Offer under the prospectus, and in line with shareholder approval received on September 17, 2020.
The company has issued all the securities proposed to be issued under the prospectus, and that all offers under the prospectus are now closed.