Netlinkz Ltd (ASX:NET) has received firm commitments from investors to raise $4,995,000 by the issuance of 6,166,664 convertible notes, with cash proceeds to be used to repay current loan facilities with Lind and CST which will extinguish those facilities.
In addition, Netlinkz has agreed to issue a further 7,793,980 convertible notes in settlement of existing debt totalling $6,313,125.
As a result, the company will issue a total of 13,960,644 convertible notes for $11,308,125 along with 104,704,820 free attaching options.
The options have an exercise price of 10 cents each (to convert into fully paid ordinary Netlinkz shares) and an expiry date of two years from the date of issue.
“Greater financial flexibility to deliver growth”
Netlinkz executive chairman and chief executive officer James Tsiolis said: “We are pleased to have secured this funding and with the repayment of the loans our balance sheet will improve.
“We now have greater financial flexibility to deliver growth based on recently announced initiatives.
“We are pursuing more sales of our market-leading VSN technology in multiple markets, with a focus on China through the iLinkAll business.
“We are making good progress in India and Singapore with the recently announced Natsoft partnership, and our new business pipeline continues to strengthen.”
Sharp jump in revenue
Netlinkz is approaching a key milestone of turning cashflow positive as business development initiatives begin to take hold in various markets and other markets show encouraging signs.
An indication of this was provided by a sharp jump in revenue in the second half of the financial year 2020, rising from $640,529 in the first half to $4,612,755 in the second half.