Visionflex to Eliminate $3.25m Debt, Shares Issued at Double Last Close
Visionflex Group’s cornerstone investors are converting $3.25 million of debt into equity at double the last closing price, paving the way for a debt-free balance sheet and a streamlined capital structure.
- Cornerstone investors convert $3.25m debt to equity at $0.004 per share
- Conversion price represents a 100% premium to last close price
- Visionflex to become debt-free, simplifying capital structure
- John Plummer and Adcock Private Equity expected to hold 42% and 23% post-conversion
- Shareholder approval and Independent Expert report pending ahead of AGM
A Strategic Debt-to-Equity Conversion
Visionflex Group Limited (ASX, VFX) has announced a significant milestone in its financial restructuring journey. Cornerstone investors John Plummer and Adcock Private Equity have agreed to convert approximately $3.25 million of outstanding debt into equity at a price of $0.004 per share. This conversion price is notably double the company’s last closing share price of $0.002, signaling strong investor confidence in Visionflex’s future prospects.
The move is a key part of Visionflex’s broader capital structure reset, designed to eliminate debt, reduce interest expenses, and create a cleaner, more straightforward balance sheet. By extinguishing all debt obligations through this equity conversion, Visionflex positions itself to focus fully on executing its growth strategy within the expanding virtual care market.
Implications for Shareholders and Capital Structure
Post-conversion, John Plummer and Adcock Private Equity are expected to hold approximately 42% and 23% of the company’s shares respectively, although these figures remain indicative and subject to change. This substantial ownership stake aligns the interests of these cornerstone investors with those of the broader shareholder base, reinforcing their commitment to Visionflex’s long-term success.
Importantly, while the debt facility with John Plummer will be terminated upon conversion, the facility with Adcock Private Equity will remain partially available, preserving $1 million in funding flexibility should the company require additional capital in the future.
Governance and Next Steps
The transaction is contingent on several approvals, including shareholder consent at the upcoming Annual General Meeting scheduled for 18 November 2025, as well as regulatory and ASX waivers. Visionflex has appointed an Independent Expert to assess whether the conversion terms are fair and reasonable, with the expert’s report to accompany the Notice of Meeting.
Should all approvals be secured, the new shares will be issued within 10 business days following the conversion date, effectively completing the company’s transition to a debt-free status.
Looking Ahead
Visionflex’s Managing Director and CEO, Joshua Mundey, expressed gratitude to the cornerstone investors for their continued support, highlighting that the premium conversion price underscores their confidence in the company’s strategy. With a strengthened balance sheet and simplified capital structure, Visionflex is better positioned to capitalize on growth opportunities in the fast-evolving virtual healthcare sector.
Bottom Line?
Visionflex’s debt elimination marks a pivotal step toward growth, but shareholder approval will be the true test of confidence.
Questions in the middle?
- Will shareholders approve the premium-priced debt-to-equity conversion at the AGM?
- How might the increased ownership stakes of cornerstone investors influence corporate governance?
- What growth initiatives will Visionflex prioritize now that it is debt-free?
