Codeifai Limited (ASX: CDE), a brand solutions technology group, announced it has successfully raised $160,000 through a loan facility sourced from s708 investors. The financing was facilitated by Oakley Capital Pty Ltd.
The loans are unsecured and carry a face value premium of $1.20 for each dollar advanced. A key feature of the loan agreement involves a potential conversion into equity, contingent upon shareholder approval at an upcoming General Meeting. If approved, lenders will have the option to convert their loans into shares within three months of the General Meeting, at a 20% discount to the 10-day VWAP (volume-weighted average price) preceding the meeting. A floor price of $0.005 per share, post-consolidation, is in place.
Furthermore, each share issued upon conversion will be accompanied by 0.5 attaching options, exercisable within 12 months of the issue date. The options will have a strike price set at a 25% premium to the conversion price of the underlying shares. Codeifai will also seek shareholder approval to conduct a share consolidation at the upcoming General Meeting.
In addition to the standard loan terms, an establishment fee of 20% of the loan amount will be payable in shares, calculated using the 10-day VWAP prior to obtaining shareholder approval. Oakley Capital, acting as the lead manager for the placement, will receive a 6% fee for their services. These funds could allow Codeifai to further expand its digital brand solutions offerings.
Codeifai specializes in AI-powered brand solutions. According to the announcement, its solutions enable brands to connect more deeply, rapidly, and intelligently with consumers, offering scalable and profitable opportunities. The company highlights its digital Brand Solutions as providing a code for everybody and everything.
