And investors (should) have known about them since 27 September 2024 (though many will not have bothered reading). Hardly new information, unlike this 4C.
The convertible note shares are limited to 19.99% of the shares on issue, t any one time, per the prospectus. So they are somewhat limited in flooding the market at any one time.
The $2,000,000 first draw-down was mostly used to pay off debt (at the expense of shareholders and dilution) per their song and dance in this 4C:
Glossing over the considerable dilutive effect to shareholders as you mention.
The second draw-down of $1,000,0000 the company was less forthcoming. It of course falls outside the reporting period to this 4C, but given its cash balance at the end of the period was $541K, it needed an extra $1 million in the coffers, given the operational cash burn was $780K for the quarter (they need the EU approvals to quickly double sales of course if they are making decent in-roads into cash burn).
The shares on issue before all this malarky were 117 million. As of the last notice they were 152 million. Buyer (of shares) very much beware (see and understand the 60 OSXAM [40 x $50K and 20 x $50K so far] issued so far). I despise the the opaque and crappy financing actions of this company, that essentially took on debt at crappy rates, then took on a crappy convertible note deal to pay off the debt and offload the burden to shareholders via dilution, conversions dilute OSX management (far too generous) holdings too. And AOF don't want to destroy their golden egg.
I am with @rythex in carefully watching AOF substantial holding notices. The note holder understandably sold down a good portion of their holdings after the recent EU approval rally (so did I, but far higher prices then them it seems, but I didn't get a nice discounted buy-in):
There comes a point to continue to hold and not destroy asset value - their last conversion at $0.0154 and I am confident AOF will not be selling underwater. They just sold a load higher after and its an entity they do not want to destroy in valuation, as they can continue to milk at nice rates as a creditor/discounted large shareholder.
I have said before (and indeed explained), investors need to really understand the past corporate actions and outstanding notes on OSX before buying in - not just look at a share price graph. And understand the convertible notes particularly - both the company and AOF have obligations to fulfill. The prospectus here:
Its a company with great science, but one of the worse examples of financialization of a business, before its even become a proper business, I have ever seen and not for those investors who are not prepared to read and understand complex financial notes.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)