SubZero Group Limited (“SZG” or the “Company”) has announced its intention to raise between $5 million and $12 million from sophisticated investors to fund operations and further growth through the issuance of 5 year redeemable convertible notes (the “Notes”). In announcing the issuance of the Notes, SubZero Group Managing Director, Scott Farrell, said “the recent award of multiple significant contracts to SubZero were of such size and structure that they could no longer be accommodated by our existing provider of debtor securitisation both in terms of concentration levels and the progressive nature of the invoicing. Accordingly we have had to look at alternative debt and equity structures to meet our ongoing funding needs.”
The Notes will be secured and will carry a coupon of 10% payable quarterly. They can be redeemed by the company at any time at $1.10 or upon expiry at face value. Likewise they may be converted after 24 months at $0.25 however, should the SZG share price be less than $0.25, the redemption price will be the higher of $0.20 cents or the 30 day VWAP. Each Note carries with it the option to acquire two (2) ordinary SZG shares at $0.25. The right to convert the shares and grant the options will be subject to shareholder approval at the AGM in November 2013.
For further information please download PDF below:
