Dotz Nano Limited (ASX: DTZ), a pioneering developer of innovative climate and industrial nanotechnologies, has announced it has entered into unsecured loan agreements totalling approximately $740,000. The debt funding comes from existing and new sophisticated investors, including the South Israel Bridging Fund (SIBF). Dotz Nano is dedicated to addressing pressing global environmental and industrial challenges. Their focus lies in advancing carbon management technologies offering an efficient and sustainable approach, thereby supporting the shift towards a carbon-neutral future.
The funds from the unsecured loan will be allocated to general working capital purposes. The loan has a term of 24 months and carries an annual interest rate of 12%, payable quarterly. As part of the agreement, Dotz Nano will issue 8.5 options for every $1 advanced under each loan. These options have an exercise price of $0.055 and expire two years from the date of issue. The loan is unsecured, and lenders have the right to convert the loan into company securities at a conversion price of $0.04 at any time before or on the maturity date.
The company intends to utilise its existing placement capacity under ASX Listing Rule 7.1 for the issuance of options and conversion rights, except where shareholder approval is required. Specifically, the 1,700,000 options and conversion shares to be issued to SIBF, a related party of director Mr Eldar, will be subject to shareholder approval at an upcoming general meeting. The board has stated that the unsecured loans with related parties are considered to be on arm’s length terms, consistent with the terms offered to all lenders.
Dotz Nano continues its efforts to secure additional debt funding and will provide updates as they become available. Detailed terms of the options are outlined in the annexure to the announcement. This announcement has been authorised for release by the Board of Dotz Nano Limited.
