Pure Foods Tasmania Limited announced a private placement of unsecured convertible notes for gross proceeds of AUD 5,300,000 on October 7, 2021. The convertible notes have a two year term, with a possible extension to three years, a 7.5% per annum interest rate and a conversion price based on the lower of 90% (or 80% if there is an extension of the maturity date) of VWAP prior to conversion; or AUD 0.50. The transaction will include participation from new and existing institutional investors and directors. The company will use funding in two tranches, with tranche one is comprised of binding commitments to raise approximately AUD 3,800,000 and tranche two will be comprised of AUD 1,500,000. The issue of the convertible notes in Tranche one is expected to occur on or around October 13, 2021. The settlement of tranche two is currently expected on or around November 30, 2021, subject to shareholder approval being obtained.