Noble Helium (ASX:NHE) has secured a Convertible Securities Agreement with Obsidian Global GP LLC. This agreement aims to raise up to US$2.5 million, supporting the company's exploration activities and providing essential working capital. The initial tranche of US$850,000 has already been drawn.
Noble Helium Limited has entered into a Convertible Securities Agreement with Obsidian Global GP LLC, securing up to US$2.5 million in funding. The funding will aid in exploration activities, license renewals, and provide working capital. The agreement includes an initial tranche of US$850,000 already drawn, with future tranches available subject to mutual agreement. The Convertible Notes are interest-free unless in default and have a 36-month maturity. Conversion terms include a fixed price of A$0.10 and a variable price determined by market conditions, with specific restrictions on variable conversions until 2025. The notes are secured with a fixed charge over certain assets, and the company retains the option to repay with a premium. Shareholder approval is required for subsequent tranches, while the agreement ensures compliance with ASX regulations. The funding structure offers a flexible financing solution aligning with Noble Helium's strategic objectives.
CEO Shaun Scott emphasized the strategic advantage of the funding structure in advancing exploration projects and maintaining financial flexibility.