A timely reminder
@Lowkeyinvestor. Thank you. These are some details from the Half Year Financial Report:
10. Convertible note liability and derivative31 Dec 24 On 23 November 2022 the Group entered into a loan agreement with Nebari Gold Fund 1, LP (Nebari) for theprovision to Horizon of loans to a total amount of up to US$5,102,041, as amended by letter of amendmentdated 11 November 2024 between Nebari, Horizon and other members of the Horizon Group (Convertible LoanFacility). The first tranche of US$2,040,816 was received on 29 November 2022 equivalent to a drawdownamount of AU$2,828,878 and the second tranche of US$3,061,224 was received on 13 June 2023 equivalentto a drawdown amount of AU$4,425,431.During the period the maturity date of the convertible notes was extended out six months to 29 November 2025.The convertible notes can be converted into shares of the Company at the option of the Lender, in multiple parts,and at any time prior to the maturity date, or to the principal being repaid, whichever is realised first. The principalis also repayable on the maturity date of 29 November 2025.The interest rate applicable on the convertible notes is determined by the Lender as the aggregate of the TermSOFR Delta on the first day of the relevant interest period plus 7.0% per annum, or the default interest rate of17.5% per annum. The Term SOFR Delta means the three-month term SOFR (Secured Overnight FinancingRate) reference rate administered by CME Group Benchmark Administration Ltd.If the notes are converted, the conversion price will be an amount equal to a 25% premium to the 15-day VWAPof the Company’s share price at the lowest of:a) 29 September 2022;b) the completion date of the loan agreement between the Company and Nebari, as executed on 23November 2002; andc) 19 October 2022.The conversion price has a mechanism under the loan agreement with the Lender, which may be adjusted forcertain events. The current conversion price is $0.042. The conversion feature of the convertible notes has beenmeasured at fair value and is recognised as a convertible note derivative.
(20min delay)