JAYRIDE’s Convertible Note Raise Hinges on Shareholder Approval Amid ASX Requotation
JAYRIDE Group Limited has secured $200,000 through the issuance of convertible notes, aiming to support its SaaS platform expansion and meet ASX requotation requirements. The raise includes participation from a sophisticated investor and a company director, with shareholder approval pending.
- Issued 200,000 unsecured convertible notes at $1 each
- Raised $200,000 split evenly between a sophisticated investor and director Brett Partridge
- Notes carry 15% annual interest, payable quarterly, with 12-month maturity
- Conversion option at a 25% discount to market price, floor price set at $0.02 per share
- Funds targeted at SaaS platform rollout and working capital, supporting ASX requotation efforts
Convertible Notes Placement Details
JAYRIDE Group Limited (ASX – JAY) has announced a placement of 200,000 unsecured convertible notes, raising a total of $200,000. The subscription was split evenly between a sophisticated investor and the company’s director, Brett Partridge. Each note carries a face value of $1 and matures in 12 months, with a 15% annual interest rate paid quarterly in cash.
The convertible notes provide holders the option to convert into ordinary shares at any time from three months after issuance until maturity. Conversion pricing is set at the lower of the price of any converted shares or a 25% discount to the volume-weighted average price over the preceding 15 business days, with a minimum floor price of $0.02 per share. The company retains the right to redeem notes early with a 10% premium plus accrued interest.
Strategic Purpose and Shareholder Approval
The capital raised through this convertible note issuance is earmarked primarily to accelerate the commercial rollout of JAYRIDE’s Software as a Service (SaaS) platform and to bolster general working capital. This move aligns with the company’s broader strategy to satisfy the Australian Securities Exchange (ASX) requirements for the re-quotation of its shares.
Importantly, the participation of director Brett Partridge in this placement is subject to shareholder approval at the upcoming 2025 Annual General Meeting (AGM). Should shareholders not approve his involvement, the company has committed to repaying his $100,000 subscription plus accrued interest. This condition underscores the company’s adherence to governance standards amid its capital raising efforts.
Market Context and Outlook
CEO Randy Prado acknowledged the challenging capital market environment but expressed optimism about welcoming a new sophisticated investor and the continued support from existing leadership. He emphasized that the funds will be prioritised for the SaaS platform’s development and operational needs.
JAYRIDE is actively engaging with the ASX, auditors, shareholders, and other stakeholders to facilitate a timely and considered re-quotation process. While the exact timing remains uncertain, the company’s transparent communication signals a commitment to restoring full market confidence and liquidity for its shares.
Bottom Line?
JAYRIDE’s convertible note raise marks a critical step toward stabilising its capital base and advancing its SaaS ambitions, but investor approval and ASX re-listing remain pivotal next hurdles.
Questions in the middle?
- Will shareholders approve director Brett Partridge’s participation at the AGM?
- How might potential conversion of notes impact share dilution and market sentiment?
- What is the anticipated timeline for ASX re-quotation and how will it affect liquidity?
