- Cycling safety equipment company Cycliq (CYQ) has entered a convertible note agreement and renounceable rights issue to raise around $4.6 million
- Under the convertible note agreement, Cycliq will aim to raise $500,000 by converting 500 million shares at 0.1 cents
- Participants will also receive one attaching option for every two shares issued, exercisable at 0.15 cents with expiry two years from issue
- The remaining $4.14 million will be raised through the rights issue, which will be fully underwritten by CPS Capital Group
- Shares will also be priced at 0.1 cents and shareholders will receive 1.8 shares for every one held as well as a free attaching option
- Cycliq will use the money to streamline manufacturing, develop an eCommerce platform and enhance its existing products
- Shares in Cycliq have been trading at 0.2 cents since March 5
Cycling safety equipment company Cycliq (CYQ) has entered a convertible note agreement and renounceable rights issue to raise around $4.6 million.
The company entered a trading halt on April 1 but did not disclose how much it intended to raise or what it would do with the funds once received.
Cycliq will aim to raise $500,000 under the convertible note agreement
Under the convertible note agreement, Cycliq will aim to raise $500,000 by converting 500 million shares at 0.1 cents.
Participants will also receive one attaching option for every two shares issued, exercisable at 0.15 cents with expiry two years from issue.
The remaining $4.14 million will be raised through the rights issue which will be fully underwritten by CPS Capital Group.
Shares will also be priced at 0.1 cents, and shareholders will receive 1.8 shares for every one held as well as a free attaching option.
If the rights issue is underwritten, CPS Capital will receive a management fee equal to two per cent of the underwritten amount as well as an underwriting fee equal to four per cent on the underwritten amount.
Subject to shareholder approval, CPS will receive 2.3 billion options at an issue price of 0.001 cents.
Furthermore, upon completion of the rights issue, Cycliq will undertake a share consolidation to reduce the amount of shares on issue.
Cycliq will use the money to streamline manufacturing, develop an e-commerce platform and enhance its existing products.
Shares in Cycliq have been trading at 0.2 cents since March 5. The company has a $4.6 million market cap.