M8 Sustainable Limited announced that a private placement and entered into an agreement for issuing Convertible Loan notes for gross proceeds of up to AUD 2.5 million on December 21, 2022. The transaction includes participation from company's largest and returning shareholders Sbang Sustainable Energy Company Limited. One convertible note in the Company with a face value of AUD 1 will be issued for every AUD 1 drawn down under the facility.

The company will pay interest rate of 4.5% per annum. subject to the satisfaction of conditions precedent, the convertible notes will convert into fully paid ordinary shares in company at an issue price of AUD 0.005 each. The conversion of the convertible notes is conditional upon the satisfaction of conditions precedent including FIRB approval and any required shareholder approval for the issue of shares in company.

unless converted into shares or repaid earlier, any moneys drawn down under the facility must be repaid by the Company 12 months after first drawdown. The Company can repay moneys drawn down under the facility earlier than the end of the term with the consent of company. Further.

if shareholder approval for the issue of shares in company upon the conversion of the convertible notes is not obtained when sought, company may require the Company to repay all sums outstanding under the loan facility within 30 days of notice from company.