DEPARTMENT 13 INTERNATIONAL LTD (ASX: D13) a cutting-edge developer of counter drone technology, is pleased to advise it has recei ved commitments to subscribe f or $4m of Tranche 2 Secured Co nvertible Note. This follows the successful $7m Tranche 1 issue and shareholder approval for a Tranche 2 issuance.
The proceeds of the Notes will be used for working capital to support D13’s expanding sales pipeline.
The Company has lodged a prospectus to allow the issue of these Tranche 2 Notes. The offer under the prospectus permits the additional issuance of Notes up to a maximum of $1m, in line with shareholder approval, up until 17 August 2018.
Henslow is Corporate Advisor and acted as Lead Manager for the Placement.
Department 13 CEO, Jonathan Hunter, commented: “I am pleased with the support the Company has received for the placement and look forward to delivering on our expanding sales pipeline throughout the balance of this year. The funds raised will supply us with the funding we require to deliver on the sales opportunities that are currently in the pipeline.”
The key terms of the Notes to be issued are as follows:
| Interest | 12%p.a. payable quarterly in cash |
| Maturity | 21 March 2020 |
| Conversion Price | Convertible at A$0.10 per share or redeemable at face value at maturity |
| Conversion | Convertible at Investor’s election to ordinary shares quarterly or at maturity |
| Liquidity | Unlisted |
| Security | Secured |
