Unith Ltd Launches $2.75M Capital Raise Backed by $500K Debt Conversion

Capital Raise Details and Pricing

Unith Ltd (ASX:UNT) has locked in firm commitments for a $1 million Placement priced at 0.8 cents per share, representing a 27.27% discount to the recent closing price of 1.1 cents. Alongside this, the company is launching a pro rata non-renounceable Entitlement Offer to eligible shareholders to raise approximately $1.75 million at the same price, offering one new share for every seven held.

Both the Placement and Entitlement Offer include free-attaching to-be-listed options on a one-for-two basis, exercisable at 1.3 cents and expiring on 31 December 2028. The Placement comprises 125 million new shares and 62.5 million options, all within Unith's ASX placement capacity rules, ensuring swift execution without immediate shareholder approval.

Debt Conversion and Shareholder Impact

In a strategic move to strengthen the balance sheet, Unith will convert $500,000 of existing debt into equity on the same terms as the Placement and Entitlement Offer. This will result in the issuance of 62.5 million shares and 31.25 million options, with the latter subject to shareholder approval. This conversion reduces leverage and aligns creditor interests with shareholder value.

Shares issued under both the Placement and Entitlement Offer will rank equally with existing ordinary shares, maintaining shareholder parity. The Entitlement Offer is available to shareholders registered by 23 July 2026 with addresses in Australia, New Zealand, Spain, or The Netherlands, excluding those in the United States or acting for US persons.

Use of Proceeds and Strategic Focus

Funds raised will be channelled into accelerating Unith's proprietary AI-driven digital human technology, enhancing marketing and business development efforts, and bolstering commercial initiatives. The company also intends to continue evaluating potential corporate and strategic acquisitions, signalling an appetite for inorganic growth alongside organic expansion. General working capital needs will also be supported by this capital injection.

Unith's recent quarterly results showed promising revenue growth and technological advances, including its Streaming Avatars platform, which offers ultra-low latency AI interactions. This capital raise builds on that momentum by providing the resources to scale technology and commercial reach further Q3 FY26 revenue of A$1.26m.

Lead Manager Engagement and Offer Timetable

GBA Capital Pty Ltd has been appointed as Lead Manager for the Placement and any shortfall placement under the Entitlement Offer. Their remuneration includes a 6% cash fee on certain funds raised plus 35 million shares and 38.75 million options, reflecting confidence in the transaction's success and alignment with Unith's growth trajectory.

The Entitlement Offer timetable is set to commence with a prospectus lodgement on 20 July 2026, with the offer closing on 14 August 2026. Trading of new securities is expected to begin on a deferred settlement basis from 17 August, moving to normal T+2 trading by 24 August.