Convertible note funding

• Issued A$1 million in convertible notes to three sophisticated investors
• Extends working capital runway to achieve short-term objectives
• Existing noteholders agree to extend maturity date to April 2027

Audio Pixels Holdings Limited (ASX:AKP) has issued A$1 million in convertible notes to three sophisticated investors. The issue of the convertible notes will enable the company to work towards its short-term objectives and extend its working capital runway. The company confirms that the investors are not related parties, members of the key management personnel, substantial holders, advisors, or associates of the above. The convertible notes have a term of up to 30 April 2027, are unsecured, and will attract an interest rate of 12% per annum, capitalised until the note is fully repaid or converted into shares. The notes are convertible to ordinary shares at A$9.04 per share, with a potential discount of 30% if the company undertakes a placement of ordinary shares at a lower price before the expiry date. The investors will also receive 300,000 unlisted options with a strike price of A$7.59, expiring on 5 May 2027. Additionally, the company's chairman, Fred Bart, has agreed to extend the maturity date of the unsecured loan facility held with the company to 30 April 2027. Of the A$13.75 million in convertible notes previously issued by the company, noteholders holding notes with a face value of A$13.7 million have agreed to extend the maturity date of their notes to 30 April 2027.