Matrix Composites & Engineering Ltd announced a private placement and entered into an agreement with Collins Street Convertible Note Fund, managed by returning investor Collins St Asset Management Pty Ltd to issue convertible note for gross proceeds of AUD 7.485 million on December 5, 2022. The notes issued are having a 10.5% fixed coupon rate and 3-year term to maturity, on December 5, 2025. The notes are secured and convertible in full or part at the election of Collins St Asset Management Pty Ltd at AUD 0.35 per share, which is a 64% premium to company's 14-day volume weighted average price of AUD 21.3 cents per share.

The company has discretion to redeem the Note, no earlier than 6 months after the issue date but prior to maturity, by repaying the outstanding amount at any time in full. The notes issued at an issue price of AUD 1 per note. The number of equity securities to be issued upon conversion, being 21,385,715 ordinary fully paid shares.

The conversion price is subject to dilutionary adjustment if company raises equity at less than AUD 0.45 per share. The company will pay an establishment fee of 3%.