• ARC to acquire $2.15 million in Ausbiz TV convertible notes
• Purchase price of $430k, paid in 4.5 million ARC shares
• Aligns with ARC's strategy of diversifying investment opportunities

ARC Funds Limited (ASX:ARC) has announced a strategic investment in Ausbiz TV Pty Ltd, acquiring $2.15 million in convertible notes from existing holders. ARC is acquiring the notes for 20% of the face value, issuing 4,467,404 new ARC shares at $0.105 per share as consideration. This equates to a total value of $430,000 in new ARC shares to be issued. The convertible notes have a 10% per annum interest rate, payable quarterly, and a maturity date of 31 October 2028. ARC has the option to convert the notes into shares in the Ausbiz Group Pty Ltd holding company at any time prior to maturity, with the conversion price to be determined by an independent valuation. If not converted, the notes will be redeemable in cash at maturity. ARC has also entered a $78,155 loan agreement with Ausbiz Group, also at 10% interest per annum. This investment aligns with ARC's strategic objective of providing clients with diverse investment opportunities across multiple asset classes, and builds on its existing portfolio which includes stakes in Ausbiz Capital, Merewether Capital, The Term Deposit Shop, and ARC Funds Operations.

Both ARC and Ausbiz will collaborate closely on new growth initiatives, including integrating Ausbiz's content, education, and financial products into ARC's Term Deposit Investor Platform, as well as exploring other opportunities to drive efficiency, reduce costs, and improve profitability.