How Will Enlitic’s A$8 Million Convertible Note Raise Shape Its AI Healthcare Future?
Enlitic has locked in commitments for an A$8 million convertible note capital raise, with initial funds arriving immediately and the remainder pending shareholder approval. This funding aims to extend the company’s runway as it advances its AI-driven healthcare solutions.
- A$8 million capital raise via secured convertible notes
- Initial tranche of A$2.6 million issued immediately
- Convertible notes mature 30 September 2026 with 14% interest pre-maturity
- Conversion price set at A$0.025 per share with post-maturity discount
- Funding supports commercial scaling and extends cash flow breakeven timeline
Capital Raise Details
Enlitic, Inc. (ASX – ENL), a healthcare technology company specialising in AI-powered medical imaging software, has secured commitments for an A$8 million capital raise through the issuance of secured convertible notes. The raise is structured in two tranches, with approximately A$2.6 million expected to be received immediately and the remaining A$5.4 million contingent on shareholder approval and other conditions.
The convertible notes carry a maturity date of 30 September 2026 and accrue interest at 14% per annum until maturity, increasing to 18% thereafter or upon default. They are secured by a first priority security interest over all of Enlitic’s tangible and intangible assets, providing investors with a strong claim on company property.
Conversion and Redemption Terms
Investors can convert the notes into CHESS Depositary Interests (CDIs) representing shares in Enlitic at an initial conversion price of A$0.025 per note. After maturity, conversion prices adjust to a 25% discount to the 10-day volume weighted average price, offering potential upside to noteholders. The company also retains the right to redeem the notes at any time, while noteholders may redeem after maturity under specified conditions.
Strategic Implications
CEO Michael Sistenich emphasised that the capital raise reflects investor confidence and will enable Enlitic to continue executing its growth strategy. The funds are earmarked to accelerate OEM partnerships, customer deployments, and ongoing development of its AI platform, which aims to streamline radiology workflows and improve healthcare outcomes globally.
However, the company has signalled that the timeline to achieve cash flow breakeven will extend beyond prior expectations. This delay is attributed to the natural cadence of customer onboarding and contract scaling rather than any fundamental shift in market demand or strategic direction.
Looking Ahead
With this capital injection, Enlitic aims to maintain operational momentum and financial flexibility through to breakeven, while preserving the ability to invest in strategic growth opportunities. The success of the second tranche depends on shareholder approval, which will be a key event to watch in the coming months.
Bottom Line?
Enlitic’s convertible note raise extends its runway but delays breakeven, underscoring the challenges of scaling AI healthcare solutions.
Questions in the middle?
- Will shareholders approve the second tranche and under what terms?
- How will market conditions affect the conversion and redemption decisions of noteholders?
- What milestones must Enlitic achieve to accelerate its path to cash flow breakeven?
