Epsilon Healthcare’s $1M Loan Notes Offer 10% Interest, Maturing June 2025
Epsilon Healthcare has launched a $1 million loan note issue aimed at supporting its working capital and diversification efforts, with a 10% interest rate and potential share conversion.
- Up to $1 million to be raised through loan notes
- Loan notes carry 10% annual interest, maturing June 30, 2025
- Potential conversion of notes into shares subject to shareholder approval
- Funds targeted at working capital, diversification, and service expansion
- Structure designed to minimize dilution for existing shareholders
Epsilon Healthcare's Strategic Capital Raise
Epsilon Healthcare Limited (ASX: EPN) has announced a capital raising initiative through the issue of loan notes, aiming to secure up to $1 million from sophisticated and professional investors. This move is designed to bolster the company’s working capital and support ongoing diversification and expansion activities within its healthcare operations.
The loan notes are structured with a face value of two cents each and carry an attractive 10% per annum interest rate, accruing daily and payable upon redemption or conversion. The notes mature on June 30, 2025, with the option for noteholders to convert their holdings into fully paid ordinary shares, pending shareholder approval at a future general meeting.
Balancing Growth and Shareholder Interests
Chairman Alan Beasley emphasized the company’s commitment to protecting shareholder value, highlighting that the loan note structure aims to minimize dilution. This approach complements recent cost-reduction measures implemented during the latter part of 2024 and early 2025, reflecting a disciplined financial strategy amid challenging market conditions.
Funds raised will be directed towards expanding Epsilon’s manufacturing capabilities, introducing new product offerings, and advancing service diversification. These initiatives align with the company’s broader goal of lifting the suspension of its trading status and positioning itself for sustainable growth.
Looking Ahead
While the loan notes provide immediate financial flexibility, the potential conversion into equity introduces an element of uncertainty dependent on shareholder approval. Managing this balance will be critical as Epsilon navigates its next phase of development and market re-engagement.
Bottom Line?
Epsilon’s loan note raise offers a lifeline for growth but hinges on shareholder backing for future equity conversion.
Questions in the middle?
- Will shareholders approve the conversion of loan notes into ordinary shares?
- How will the funds specifically accelerate Epsilon’s diversification and service expansion?
- What impact will this capital raise have on Epsilon’s trading suspension status and market confidence?
