Design Milk Co Limited announced a private placement of convertible notes for a gross proceeds of AUD 200,000 on August 31, 2022. The transaction will include participation from Bombora Investment Management Pty Ltd, and other investors, with the ability to accept oversubscriptions at the Company's discretion. The notes carry a coupon rate of 12% per annum accrued monthly on the face value from the date of issue and will mature in 3 years.

The notes have a conversion price of AUD 0.07 per ordinary share. The company will also issue options, 1 for 2 options with AUD 0.15 strike price and 31 October 2027 expiry date, attached to each share issued from convertible note conversion.