Algae.Tec Limited (ASX:AEB) announced that it has entered into a conditional funding agreement with existing investor, Magna Management LLC for a private placement of convertible securities for gross proceeds of AUD 7,000,000 on June 8, 2018. Magna Management LLC will invest through MEF I, L.P. The company will raise the funding in multiple tranches. The company will receive AUD 1,000,000 after five days of entry into the agreement, AUD 1,000,000 five days after the shareholder approval of all agreement, AUD 2,000,000 upon the first sale by the company of nutraceutical algae oil and the receipt of all necessary ASX waivers and shareholder approval and; AUD 3,000,000 upon the first sale by the company of a new algae product or algae to a new market and the receipt of all necessary ASX waivers and subject to shareholder approval. The company will pay a commitment fee of 5% of the total aggregate amount of the drawdown. The conversion price will be lesser of 80% of the lowest daily VWAP during the 5 trading days prior to a conversion notice date; and AUD 0.035. The notes are redeemable by the company at 110% of face value for the 6 months following drawdown of the relevant tranche or 115% thereafter.