Nexion announces convertible note finance

NEXION Group Ltd (ASX: $NNG) has executed agreements for the issue of 7.8 million convertible notes to raise a total of $780,000. The purpose of this financing is to contribute to costs incurred for a proposed acquisition first announced on 23 April 2024. The company may consider accepting further offers up to a maximum of $2 million via the issue of additional convertible notes to contribute to the same purpose.

Executive commentary on convertible note finance

The convertible note agreements represent a strategic move for Nexion to raise necessary funds for the proposed acquisition. This financing will provide the company with the required capital to support its growth initiatives and contribute to the costs associated with the acquisition. The terms of the convertible notes, including the option for early repayment and the unsecured nature of the notes, offer flexibility and favorable conditions for both the company and the noteholders.

Summary of Nexion's convertible note announcement

NEXION Group Ltd (ASX: $NNG) has successfully executed convertible note agreements to raise $780,000 for the purpose of funding a proposed acquisition. The company may consider further offers to raise up to $2 million through additional convertible notes for the same objective. The convertible notes are unsecured, mature on 31 May 2026, and attract interest at 10% per annum. Nexion may elect to repay the notes in cash at any time prior to maturity. Additionally, the notes include an adjustment mechanism and are subject to shareholder approval for conversion into shares. The company expects the notes to be repaid in full in cash with no conversion securities issued. This strategic financing move aligns with Nexion's growth strategy and its commitment to pursuing opportunities that enhance its market position and capabilities in Enterprise Asset Management solutions.