Anteris Technologies Ltd (ASX:AVR, OTC:AMEUF) has secured a convertible note facility of up to $25 million with Obsidian Global Partners, LLC, to access additional funds needed to support the re-domiciliation of the Anteris Group to the United States and the completion of a US initial public offering (IPO).
Key points of the facility
Facility structure: The $25 million facility will support Anteris’s strategic initiatives. An initial drawdown of $7.5 million is agreed upon, with future drawdowns subject to mutual consent between Anteris and Obsidian.
Subsequent drawdowns will be available in $5 million increments or the remaining balance of the Facility Limit, whichever is lower, subject to mutual agreement between Anteris and Obsidian.
Convertible note repayment options: Convertible notes under the facility can be repaid by Anteris at face value before January 15, 2025. The facility’s term spans 12 months, and convertible notes carry a 24-month repayment period, with debt classified as senior secured.
The company may repay the convertible notes in cash, either partially or in full, at any time. Such cash repayments will be subject to the following premiums on the face value of the convertible notes:
- Repayment before January 15, 2025: 0% premium on face value.
- Repayment between January 16, 2025 and June 30, 2025: 5% premium on face value.
- Repayment after July 1, 2025: 10% premium on face value.
Fee structure: For each drawdown, Anteris will pay Obsidian a fee of 3% on the drawn amount, deducted from the drawdown amount.
Convertible note terms: Upon each drawdown, Anteris will issue notes convertible into fully-paid ordinary shares at a rate of 115% of the principal drawdown amount, with each note valued at US$1.15.
Options and limits: In connection with the initial drawdown, Anteris will issue Obsidian 75,000 options with a strike price of $25.00, exercisable over three years, subject to shareholder approval. The total number of options granted will equal 25% of the drawdown amount’s value.
Should Anteris reach its placement capacity, the convertible notes will be redeemed in cash. Additional drawdowns will be negotiated with Obsidian and may require shareholder approval depending on Anteris’s capacity under ASX rules at the time.
In securing this facility, Obsidian will hold a senior-ranking security interest across all of Anteris’s assets.
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