- Norwood Systems (NOR) has issued upwards of 8.3 million convertible notes to raise $200,000 for use as working capital
- The mobile services provider executed a binding terms sheet, issuing the notes, priced at 2.4 cents each, to Managing Director Paul Ostergaard
- Pending shareholder approval, the notes will automatically convert into shares at a matching conversion price of 2.4 cents
- NOR will seek shareholder approval at a general meeting, still to be convened
- Norwood Systems shares have spiked 5.26 per cent to trade at two cents
Norwood Systems (NOR) has raised $200,000 through the issue of more than 8.3 million convertible notes.
Using its Corona virtual mobile services platform, NOR is working to revolutionise mobile voice, messaging, data and cyber security services.
The Corona Cloud platform is made up of the intuitive World Apps, the insightful Corona Cloud Dashboard, and the Corona Network. Together, they work to make corporate communications more cost effective, easy to manage, and compliant with regulations.
The company recently executed a binding terms sheet and issued convertible notes, priced at 2.4 cents, to Norwood’s Managing Director, Paul Ostergaard, who’s also a significant shareholder.
Once approved by shareholders, these notes will automatically convert into shares at a price of 2.4 cents, or will otherwise be redeemed within 12 months of issue.
The convertible notes have an interest rate of 8 per cent per annum.
Shareholders’ approval will be sought at a general meeting, which is yet to be convened.
On the market this afternoon, Norwood Systems shares are up 5.26 per cent to trade at 2 cents at 1:59 pm AEST.