AVA Risk Group has locked in a strategic investment of up to A$12.6 million from US-based Hale Capital, aiming to boost its footprint in the lucrative US critical infrastructure market. The deal includes convertible notes and warrants priced at an 81% premium, alongside a new board appointment.
- A$7 million secured convertible note facility with Hale Capital
- Up to A$5.6 million in associated warrants at an 81% premium
- Hale Capital to nominate a board member to AVA Risk Group
- Funding to accelerate US commercial scaling and product deployment
- Transaction subject to shareholder approval, expected early 2026
Strategic Capital Injection for US Growth
AVA Risk Group Limited (ASX, AVA), a leader in security technology solutions for critical infrastructure, has announced a significant strategic investment from US-based Hale Capital Management. The investment, totaling up to A$12.6 million, comprises a secured convertible note facility of A$7 million and associated warrants worth up to A$5.6 million. This capital injection is designed to fuel AVA’s ambitious expansion plans in the United States, its largest and most promising market.
Premium Pricing Reflects Confidence
The convertible notes and warrants are priced at A$0.1234 per share, representing an 81% premium to AVA’s closing share price on 30 December 2025. This premium pricing signals strong investor confidence in AVA’s growth trajectory and the value of its technology portfolio. The notes have a maturity of four years, extendable by one year, and carry a coupon rate of 10% per annum or BBSW Mid plus 6%, whichever is higher.
Strategic Partnership Beyond Capital
Beyond the financial commitment, Hale Capital brings deep expertise in scaling technology businesses within US federal, state, and enterprise markets. The firm’s extensive network across critical infrastructure sectors, including telecommunications and utilities, is expected to shorten AVA’s sales cycles and enhance market penetration. Hale will also nominate an experienced industry executive to AVA’s board, reinforcing strategic alignment and governance as AVA accelerates its US operations.
Focused on Critical Infrastructure Solutions
AVA’s product suite spans smart fibre optic sensing systems, biometric access control, and advanced illumination and detection technologies. These solutions are increasingly vital for protecting critical infrastructure assets against evolving security threats. The investment will support scaling of AVA’s commercial and operational capabilities in the US, accelerating deployment of its Detect, Access, and Illuminate product lines, and positioning the company for strategic partnerships and potential acquisitions.
Next Steps and Shareholder Approval
The transaction is contingent on shareholder approval, with key milestones including a shareholder meeting expected by late February 2026. Upon financial close, AVA will immediately access an initial tranche of nearly A$3 million, with the balance subject to approval. The company has also granted Hale certain security interests and rights, including board nomination and observer rights, underscoring the strategic nature of this partnership.
Bottom Line?
As AVA Risk Group embarks on this new growth phase with Hale Capital, investors will be watching closely to see how swiftly the company can convert capital and expertise into US market traction.
Questions in the middle?
- Will AVA’s shareholders approve the full funding and warrant issuance as planned?
- How quickly can Hale Capital’s involvement accelerate AVA’s US sales and partnerships?
- What impact will the 81% premium pricing have on AVA’s share liquidity and valuation?