• Maximum funding of A$7m via convertible loan note and A$5.6m via warrants
• Convertible note conversion price at 81% premium to last closing share price
• Warrants exercise price at 81% premium to last closing share price

AVA Risk Group Limited (ASX: AVA) has entered into binding agreements with Hale Capital for a strategic investment of up to A$7.0 million via a Convertible Loan Note and up to A$5.6 million via associated Warrants. The transaction provides AVA with growth capital and a highly aligned strategic partner to support the company's U.S. expansion strategy, which is its largest and most attractive addressable market. The convertible note has a conversion price of A$0.1234 per ordinary share, representing an 81% premium to AVA's last closing share price. The warrants also have an exercise price of A$0.1234, again at an 81% premium. Hale Capital is a U.S.-based investment firm that partners with exceptional leaders to create enduring national security and technology businesses. The firm brings extensive experience supporting companies scaling into the U.S. federal, state and enterprise markets, as well as deep relationships across critical infrastructure owners and operators, telecommunications, utilities and government-adjacent customers. The financing will be used to fund AVA's working capital, general corporate purposes and future growth initiatives, including the expansion of its sales, marketing and operational activities and expansion into U.S. markets.

The strategic investment from Hale Capital supports AVA's next phase of growth, including scaling its U.S. commercial and operational capability, accelerating deployment of its solutions across U.S. critical infrastructure markets, leveraging Hale's network to shorten sales cycles and expand customer penetration, and positioning AVA for strategic partnerships and potential bolt-on acquisitions in the United States.