Spenda Limited (ASX:SPX), an innovative software company with embedded electronic payment solutions for supply chains and trading networks, has announced the execution of a $3.5 million convertible loan facility with Obsidian Global GP, LLC. The facility aims to bolster the company’s working capital and support its operational goals. Spenda is an integrated business platform that enables businesses across the supply chain to sell better and get paid faster. Spenda is both a software solutions provider and a payment processor, delivering the essential infrastructure to streamline processes before, during and after the payment event.
The investment schedule includes an initial $1.25 million upon execution, with a further $500,000 available for drawdown. An additional $1.75 million is accessible after six months, subject to mutual agreement and shareholder approval. The convertible loan has specific conversion terms: no conversion is permitted for the first 60 days. Post that period, conversion can occur at a 10% discount to a 15-day VWAP calculation prior to the conversion notice date, with a ceiling price of $0.015 and a floor price of $0.003.
The facility is secured by a general charge over the company’s assets, second to Capricorn. Spenda Chairman Peter Richards expressed gratitude for Obsidian’s ongoing support, stating that their strategic input would help the company move closer to operational break-even. The company confirmed that the agreement was negotiated at arm’s length with an independent, sophisticated investor and that the issue of convertible notes is an appropriate and commercial solution to provide working capital.
Spenda sought legal advice and confirmed that the convertible notes are market standard and do not contain non-standard features. The maximum number of company securities to be issued without shareholder approval is 620,000,000, including placement shares and options. The announcement has been authorised by the Managing Director.
