InFocus Group Holdings has extended its convertible note facility by $1 million, aiming to support growth in Thailand and new ventures in iGaming, pending shareholder approval.
- Convertible note facility extended by AUD 1 million with Obsidian Global
- Fixed conversion price set at a 170% premium to last close
- Funds targeted for software expansion in Thailand and iGaming ventures
- 2% facility fee paid in shares to Obsidian
- Shareholder approval required at upcoming extraordinary general meeting
Extension of 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 amendment allows InFocus to draw an additional AUD 1 million, on top of the AUD 450,000 already drawn, subject to shareholder approval. The move underscores the company’s strategic intent to bolster working capital as it scales operations in Thailand and embarks on new initiatives in the iGaming sector.
Conversion Terms and Shareholder Impact
The extended facility carries a fixed conversion price of 3 cents per share, which notably represents a 170% premium over the company’s last closing share price. Obsidian is restricted from converting the extended notes until February 1, 2026, unless the share price exceeds 4 cents, providing a degree of protection against immediate dilution. Additionally, Obsidian will receive a 2% facility fee paid in shares, amounting to approximately 1.81 million shares at 1.1 cents each, which are expected to be issued imminently.
Strategic Growth Focus
The capital raised through this facility extension is earmarked primarily for expanding InFocus’s software solutions activities in Thailand, a market showing promising growth potential. Moreover, the funds will support the company’s newly launched strategic business units, InFocus Digital Ventures and InFocus Gaming Technologies, which target the digital assets and iGaming sectors respectively. These ventures represent a diversification of InFocus’s portfolio and a bid to capitalize on emerging technology trends.
Governance and Covenants
The facility includes customary negative covenants restricting significant asset disposals, share capital reductions, and issuance of equity-linked securities without Obsidian’s consent. The agreement also outlines events of default that could trigger penalties or accelerated redemption. These provisions aim to safeguard both parties’ interests while allowing InFocus operational flexibility. Shareholder approval for the additional notes will be sought at an extraordinary general meeting shortly, a key milestone for the transaction’s completion.
Looking Ahead
This financing extension reflects InFocus’s proactive approach to securing growth capital amid evolving market opportunities. While the premium conversion price and shareholder approval requirement temper immediate dilution risks, investors will be watching closely how these funds translate into operational progress in Thailand and the iGaming space. The company’s ability to execute on these fronts will be critical to justifying the expanded capital structure and unlocking shareholder value.
Bottom Line?
InFocus’s financing extension sets the stage for growth but hinges on shareholder backing and successful execution in new markets.
Questions in the middle?
- Will shareholders approve the additional $1 million convertible notes at the upcoming meeting?
- How quickly can InFocus scale its operations in Thailand and the iGaming sector with this new capital?
- What impact will the conversion terms have on share dilution and investor sentiment over the next year?