Excite Technology Services has secured $1.05 million through convertible notes, aiming to capitalise on its strongest operational cash flow quarter and accelerate growth.
- Secured $1.05 million via unsecured convertible notes
- Notes carry 15% annual interest, payable in cash or shares
- Conversion price set at $0.01 per share, subject to shareholder approval
- Free-attaching options exercisable at $0.012 with 36-month expiry
- Funding follows record $1 million operational cash flow quarter
Convertible Notes Raise $1.05M
Excite Technology Services Limited (ASX:EXT), a specialist in cybersecurity services, has announced a successful capital raising through the issue of $1.05 million in unsecured convertible notes. The notes were offered exclusively to existing sophisticated investors, reflecting confidence from current stakeholders in the company’s growth prospects.
The convertible notes carry a notably high interest rate of 15% per annum, payable quarterly either in cash or shares, giving investors flexibility in how they receive returns. The notes have a 12-month term and can be converted into shares at $0.01 each, pending shareholder approval. Additionally, investors will receive free-attaching options exercisable at $0.012, valid for 36 months, further sweetening the deal.
Momentum from Record Operational Cash Flow
This capital injection comes on the back of Excite’s strongest quarterly operational cash flow performance to date, exceeding $1 million in the December 2025 quarter. The board views this milestone as a pivotal moment, signalling the company’s transition towards consistent cash flow positivity.
With this fresh funding, Excite aims to accelerate the scaling of its recurring revenue streams, which include threat prevention, managed cloud and IT services, digital forensics, incident response, and accredited cybersecurity training. These services are critical in an increasingly digital and security-conscious environment, positioning Excite well for future growth.
Shareholder Approval and Future Outlook
While the convertible notes issue is expected to complete imminently, the conversion into shares and the issuance of free-attaching options remain subject to shareholder approval. This introduces an element of uncertainty regarding the final impact on the company’s capital structure and potential dilution for existing shareholders.
Nonetheless, the board’s confidence in leveraging this funding to build on recent momentum suggests a strategic push to solidify Excite’s market position. Investors will be watching closely for upcoming shareholder meetings and subsequent financial updates to gauge how effectively the company translates this capital into sustainable growth.
Bottom Line?
Excite’s convertible notes raise marks a strategic step to capitalise on recent cash flow gains, but shareholder approval will be key to unlocking its full growth potential.
Questions in the middle?
- Will shareholders approve the conversion and option issuance as planned?
- How will the convertible notes impact Excite’s earnings and share dilution?
- What specific growth initiatives will the new funding prioritise?