Loan & DebtMay 26, 2026, 04:13 PM
Gelteq Secures Up to $3.5M Debt Financing via Convertible Notes
AI Summary
Gelteq Limited entered into a securities purchase agreement with an institutional investor for up to $3.5 million in debt financing. An initial tranche of $1.0 million (net of original issue discount) was funded through a $1.165 million convertible promissory note, accruing interest at 7% per annum with an 18-month maturity. A second tranche of $2.5 million (net) is subject to shareholder approval and the absence of trigger events, with similar terms to the initial note.
Key Highlights
- Gelteq secured up to $3.5 million in debt financing from an institutional investor.
- Initial funding of $1.0 million (net) received, issuing a $1.165 million convertible promissory note.
- The Initial Note carries a 7% annual interest rate and matures in 18 months.
- A second tranche of $2.5 million (net) is contingent on shareholder approval and no trigger events.
- Notes are convertible into Ordinary Shares or cash after six months at 93% of VWAP (min $0.50).
- Gelteq can prepay the Initial Note at 110% of the outstanding balance.
- Trigger Events can increase outstanding balance by 5% or 15% per occurrence.
Price Impact
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