Clime Capital Unveils 6.5% Convertible Notes Offer to Boost Capital
Clime Capital Limited has launched a new Convertible Redeemable Notes offer featuring a 6.5% fixed annual interest rate, providing investors with monthly income and conversion flexibility.
- Convertible notes issued at $1.00 each
- 6.5% fixed interest paid monthly
- Option to convert notes into ordinary shares or redeem at maturity
- Offer opened under prospectus dated 1 August 2025
- Priority offer available to eligible shareholders and noteholders
Clime Capital Launches Convertible Notes Offer
Clime Capital Limited (ASX – CAM) has officially opened its Convertible Redeemable Notes offer, inviting investors to participate in a capital raising initiative designed to strengthen the company's financial position. The offer, announced on 5 August 2025, follows the release of a detailed prospectus dated 1 August 2025.
The notes are priced at $1.00 each, consistent with the pricing of previous CAM notes, and carry a fixed interest rate of 6.5% per annum. Notably, interest payments will be made monthly, providing investors with a steady income stream. This structure aims to appeal to income-focused investors seeking predictable returns.
Conversion and Redemption Flexibility
One of the key features of the offer is the option for noteholders to convert their notes into ordinary CAM shares on a one-for-one basis, or alternatively redeem the notes at maturity. This flexibility allows investors to participate in potential equity upside while retaining the security of fixed income if they choose to redeem.
The convertible notes mechanism is a strategic tool for Clime Capital, enabling the company to raise capital while managing dilution and maintaining investor confidence. The offer is targeted primarily at existing shareholders and noteholders, who have received personalised invitations under a Priority Offer.
Market Implications and Next Steps
While the announcement provides clarity on the interest rate and conversion terms, details such as the total amount to be raised and the maturity date of the notes remain undisclosed in this initial release. Investors are advised to review the full prospectus and seek professional advice before committing funds.
Clime Capital’s move to open this offer signals a proactive approach to capital management amid a competitive investment environment. The market will be watching closely to gauge investor appetite and the impact on CAM’s share price and capital structure in the coming months.
Bottom Line?
Clime Capital’s convertible notes offer sets the stage for a pivotal capital raise with investor flexibility at its core.
Questions in the middle?
- What is the total target amount and maturity date for the convertible notes?
- How will conversion impact Clime Capital’s share dilution and control?
- What is the anticipated market reception and uptake of the offer?
