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Netlinkz (ASX:NET) raises $11.3M through convertible note issue

Technology
ASX:NET      MCAP $11.63M
25 September 2020 09:39 (AEST)
NetLinkz (ASX:NET) - CEO & Executive Chairman, James Tsiolis

IT company Netlinkz (NET) has provided an update on its plan to raise funds via a convertible note issue, announcing it’s received $11.3 million worth of commitments.

Netlinks first announced its plan to raise money via convertible notes back in late July, with the initial target of raising $18 million.

In the almost two months since then, the company said it had received firm commitments from investors to raise $4.99 million via the issue of 6.1 million notes.

Netlinks will also pay off a $6.3 million in loans to CST Capital and Lind Global Macro Fund via the issue of an additional 7.7 million notes.

All of the notes are worth around 90 cents each, or a 10 per cent discount on the $1 face note value with interest deducted upfront.

The convertible notes also come with attaching options, with 7.5 options to be issued with each note subscribed for.

The options have an exercise price of 10 cents each and must be exercised within two years of being issued.

In total, Netlinkz expects to issue 13.9 million convertible notes, with an aggregate face value of $13.9 million, and over 104 million free attaching options.

The company has already issued 11 million notes and 83 million options, with the rest to be issued on or before October 2.

“We are pleased to have secured this funding and with the repayment of the loans our balance sheet will improve,” Netlinkz CEO James Tsiolis said.

“We now have greater financial flexibility to deliver growth based on recently announced initiatives,” he added.

Shares in NET are trading up 9.52 per cent at 6.9 cents each at the close of trading today.

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