Imagion Biosystems Limited announced that it will issue secured convertible notes for gross proceeds of up to AUD 15 million on March 7, 2023. The transaction will include participation from Mercer Street Global Opportunity Fund, LLC, a fund managed by Mercer Street Capital Partners, LLC. The company will issue the notes in three tranches, initially with AUD 1.5 million and thereafter with AUD 1 million and AUD 12.5 million respectively, subject to subject to shareholders approval or the company having available placement capacity. The note is convertible at the right of the holder into into fully paid ordinary shares at 90% of the lowest VWAP during the 15 trading days immediately prior to the issue of a conversion notice, subject to a floor price of AUD 0.0125. All tranches have a term of 18 months from drawdown. The company will pay no interest is payable on the unconverted drawn funds. The company has the right to repurchase any unconverted securities, at any time during the term of each tranche, at 105% of the outstanding face value. The company will pay interest at a rate of 15% per annum on the face value of all outstanding convertible notes.

On March 17, 2023, the company has issued cleansing notice related to first tranche. The convertible notes which are going to be issued in first tranche having face value of each convertible note is AUD 1.00. The notes will mature after 18 months from date of issue.