Broo Limited announced that it has entered into a convertible note agreement with Michael Chen, a director of the company for issuance of 600,000 convertible notes at a price of AUD 1 per note for gross proceeds of AUD 600,000 on February 7, 2024. The notes carry an interest rate of 10% p.a. and maturity date is August 1, 2025. The convertible notes will convert into ordinary shares in the company at a conversion price of $0.0005 per note.

The convertible notes are not transferable. The issue of convertible notes is made without shareholder approval, however the conversion rights and/or conversion of the notes into ordinary shares in the company will be subject to all necessary shareholder approvals under the listing rules.