NZS Raises $55,000 at 12% Interest Convertible Notes, Conversion Pending
New Zealand Coastal Seafoods Limited has raised $55,000 through a convertible note subscription, bolstering its working capital to advance sustainable seafood initiatives.
- Raised $55,000 via unsecured convertible notes
- Notes carry 12% interest if not converted within 12 months
- Conversion price set at $0.015 per share, pending shareholder approval
- Funds aimed at supporting operations and strategic growth
- Emphasis on sustainable and responsible fishing practices
Capital Raise Overview
New Zealand Coastal Seafoods Limited (ASX – NZS) has successfully secured $55,000 through a convertible note subscription from a professional investor. This modest but strategic capital injection is designed to strengthen the company’s financial footing and provide additional working capital to support its ongoing operations and growth plans.
Convertible Note Terms
The convertible notes were issued at a face value of $1 each, carrying an interest rate of 12% per annum if they remain unconverted after 12 months. The notes can be converted into ordinary shares at a price of $0.015 per share, subject to shareholder approval at an upcoming meeting. The notes are unsecured, reflecting a degree of risk for the investor but also confidence in NZS’s prospects.
Strategic Implications
Executive Chairman Peter Chai highlighted that the funds will enable the company to accelerate its strategic initiatives. NZS’s focus remains on sustainable and environmentally responsible seafood production, with operations spanning key Australian fisheries such as the Coral Sea Fishery and Torres Strait Fishery. This capital raise underscores investor confidence in NZS’s growth strategy and commitment to sustainability.
Shareholder Considerations
The conversion of these notes into shares will require shareholder approval, introducing an element of uncertainty regarding the ultimate impact on the company’s capital structure. Post-issue, NZS retains a significant capacity to issue further shares under ASX Listing Rule 7.1A, suggesting room for additional capital raises if needed.
Looking Ahead
While the amount raised is relatively small, it is a clear signal of NZS’s intent to maintain momentum in its sustainable seafood operations and expand its market presence. Investors will be watching closely for the outcome of the shareholder meeting and how effectively the company deploys these funds to advance its strategic goals.
Bottom Line?
NZS’s convertible note raise is a cautious but positive step toward scaling its sustainable seafood ambitions.
Questions in the middle?
- Will shareholders approve the conversion of notes, and how will this affect share dilution?
- How will NZS specifically deploy the new funds to accelerate its strategic initiatives?
- What are the company’s plans for further capital raising given remaining placement capacity?
