InFocus Secures $450K Boost to Accelerate AI and Crypto Expansion
InFocus Group Holdings has extended its convertible note facility with Obsidian Global, unlocking up to AUD 450,000 to accelerate growth in digital assets, AI, and machine learning.
- Convertible note facility extended by AUD 450,000 with initial AUD 200,000 drawdown
- Conversion price fixed at 3 cents with conversion restrictions tied to share price
- Funds earmarked for expansion in frontier technologies including cryptocurrencies and AI
- Second tranche of AUD 250,000 subject to shareholder approval
- Facility governed by detailed covenants and security arrangements
InFocus Extends Convertible Note Facility
InFocus Group Holdings Limited (ASX – IFG), a specialist in data analytics and software solutions, has announced an amendment and extension to its existing convertible note financing facility with Obsidian Global GP LLC. This move allows InFocus to draw an additional AUD 450,000, with AUD 200,000 to be drawn immediately and the remaining AUD 250,000 contingent on shareholder approval.
Conversion Terms and Share Price Safeguards
The convertible notes carry a fixed conversion price of 3 cents per share, representing an 87% premium to the company’s last closing price. Notably, Obsidian is restricted from converting the extended facility within the first three months unless the IFG share price exceeds 4 cents, providing a safeguard against premature dilution at lower valuations. The maximum number of shares convertible without shareholder approval is capped at 6.6 million for the initial tranche.
Strategic Use of Funds for Frontier Technologies
The capital raised through this facility is earmarked to fuel InFocus’s expansion into frontier technologies, including digital assets such as cryptocurrencies, big data analytics, artificial intelligence, and machine learning. This aligns with the company’s broader strategy to leverage its expertise across its four business units, including InFocus Analytics and software consultancies Onify and Prodigy9, to capture emerging market opportunities.
Robust Covenants and Security Measures
The amended agreement includes comprehensive covenants restricting asset disposals, debt repayments, and equity issuances without Obsidian’s consent, ensuring disciplined capital management. The notes are secured under a General Security Agreement, and the facility includes detailed default provisions that could trigger increased redemption amounts or conversion discounts, underscoring the lender’s protections.
Looking Ahead
With the first tranche already underway and shareholder approval pending for the second, InFocus is positioning itself to accelerate growth in high-potential technology sectors. The company’s ability to meet share price thresholds for conversion and secure shareholder backing will be critical to fully unlocking this funding.
Bottom Line?
InFocus’s extended convertible note facility marks a pivotal step in funding its frontier tech ambitions, but execution risks remain tied to share price performance and shareholder approval.
Questions in the middle?
- Will InFocus’s share price sustain above the 4-cent threshold to enable note conversion?
- How will shareholders respond to the proposed second tranche of AUD 250,000?
- What specific projects or initiatives will the new funds prioritize within AI and digital assets?
