• Secured $1.5 million in funding via unsecured convertible notes from a sophisticated investor
• Convertible notes have a 2-year term with 15% annual interest
• Conversion permitted at any time at a fixed price of 2.2 cents per share

Harvest Technology Group Limited (HTG) has announced that it has secured binding commitments for $1.5 million in funding via unsecured convertible notes from a sophisticated investor. The sophisticated investor has participated in past funding rounds, bringing their total funding to $4.7 million. The $1.5 million in new funding will be via 1,500 unsecured convertible notes with a face value of $1,000 each. The notes have a 2-year term with 15% annual interest, of which 9% will be paid in quarterly cash instalments and 6% will be capitalized with payment at maturity. The notes can be redeemed or converted at the noteholder's election at maturity, with conversion permitted at any time at a fixed conversion price of 2.2 cents per share. The company will also issue 2-year conversion options, with one new option issued for every two new shares if the convertible notes are converted within 12 months of the issue date. Each option will have an exercise price of 3 cents and a 2-year expiry. The company must obtain all necessary shareholder and regulatory approvals to enable the conversion of the notes and the issue of the options. If the company is unable to receive the required approvals, the notes will be redeemed in cash. The company has also reached an agreement with the holders of its existing secured convertible notes to amend the maturity date to 1 October 2026.

The $1.5 million in new funding is expected to be received by the middle of next week. The company's CEO stated that the funding will support Harvest Technology Group's 3-year pathway to profit plan.