- Elsight (ELS) secures commitments to raise $8 million through an offer of secured convertible notes to “well recognised” Australian institutions and sophisticated investors
- Subscription monies will be paid to the company in two tranches, the first $6 million within 30 days and the last $2 million upon shareholder approval
- Each note will convert into one fully paid ordinary share of the company at any time from the first anniversary from the date of issue until the maturity date
- Funds raised from the offering will strengthen Elsight’s balance sheet and allow it to execute on growth initiatives
- Shares in Elsight are down 5.56 per cent to close at 34 cents
Elsight (ELS) has secured commitments to raise $8 million through an offer of secured convertible notes to “well recognised” Australian institutions and sophisticated investors.
Under the terms of the convertible note subscription deed, subscription monies will be paid to the company in two tranches, the first $6 million within 30 days and the last $2 million upon shareholder approval.
Each convertible note has a face value of 30 cents for a term of 24 months from the date of issue with an eight per cent per annum capitalised interest rate.
The note will convert into one fully paid ordinary share of the company at any time from the first anniversary from the date of issue until the maturity date.
Funds raised from the offering will strengthen Elsight’s balance sheet and allow it to execute on growth initiatives.
“Calendar 2022 has been a breakthrough year for Elsight as we delivered a number of commercial agreements and laid the foundations for further growth as the unmanned industry continues to push towards mainstream commercial adoption in a number of sectors,” CEO Yoav Amitai said.
“The company is expecting several repeat orders with our partners over the near term and this capital raise ensures we are well placed to continue to position Elsight as market leader.”
Elsight also expects to fund additional capital expenditure to ensure it is able to satisfy the unmanned market demands while going towards mainstream commercial adaptation.
Shares in Elsight were down 5.56 per cent to close at 34 cents.