Shareholder Approval Key as CONNEQT Faces Potential Loan Repayment Risk

Capital Injection to Sustain Momentum

CONNEQT Health Limited (ASX – CQT), a medical technology company focused on vascular health, has secured a significant capital boost through a $2 million convertible note facility. The funds come from C2 Ventures Pty Ltd, an entity owned by two of CONNEQT’s directors, Niall Cairns and Craig Cooper. This injection is designed to provide the company with additional financial flexibility as it continues to advance its commercialisation and market development strategies.

Terms and Conditions of the Facility

The convertible note facility is structured as an unsecured loan bearing a 10% annual interest rate, with a minimum interest period of six months and a 2% commitment fee on the facility amount. The notes will convert into shares at a price that is the lower of $0.04 (the price from the company’s last equity raise) or a 10% discount to the price of the next qualifying capital raise of $5 million or more. Conversion can be initiated either by the company following such a capital raise or by the noteholder after three months from issue, up until the maturity date of June 30, 2026.

Shareholder Approval and Potential Contingencies

Importantly, the conversion of the loan into convertible notes and subsequent issuance of shares is contingent on shareholder approval, which is expected to be sought at the company’s 2025 Annual General Meeting. Should shareholders not approve the conversion by December 30, 2025, the company may face a contingent cash adjustment payable to C2 Ventures if the share price exceeds $0.04 at that time. Alternatively, if approval is withheld, C2 Ventures may demand repayment of the loan on 30 days’ notice. This introduces a degree of uncertainty, underscoring the importance of shareholder support for the company’s capital strategy.

Strategic Implications for CONNEQT Health

This funding arrangement reflects a vote of confidence from key insiders and provides CONNEQT Health with the working capital necessary to pursue its mission of extending longevity through innovative vascular health technologies. The company’s portfolio, which includes medical and home health devices based on its proprietary SphygmoCor® vascular biomarker technology, stands to benefit from sustained investment as it navigates competitive and regulatory landscapes.

Looking Ahead

Investors will be watching closely for the outcome of the shareholder vote and any subsequent moves to convert the loan into equity. The terms of the facility offer a balance of risk and opportunity, with the potential for dilution offset by the capital support critical to advancing CONNEQT’s commercial objectives.