Epsilon Healthcare Limited (ASX: EPN) has announced that it will raise up to $1,000,000 through the issue of loan notes to sophisticated investors. The funding is aimed at bolstering working capital and supporting the company’s ongoing diversification and service expansion efforts. EPN’s shares are currently suspended. The company has initiated cost-reduction initiatives during Q4 2024 and Q1 2025 to complement the new funding. The loan notes, priced at $0.02 each, will accrue interest at 10% per annum and are redeemable on June 30, 2025. The structure is designed to minimize dilution to existing shareholders. Noteholders have the option to convert the notes into fully paid ordinary EPN shares, subject to shareholder approval at a future general meeting. The funds will also support new product offerings into EPN’s manufacturing facility. Chairman Alan Beasley emphasized that the funding will enable EPN to continue investing in the business and undertake necessary actions to lift the suspension of trading of the Company’s shares. The maximum amount of funds to be raised is $1,000,000 with a maximum of 50,000,000 notes to be issued.
