Medigard Limited announced that it expects to receive AUD 0.30 million in funding from Shanghai Sol-millennium Medical Products Co., Ltd.

Medigard Limited (ASX:MGZ) announced a private placement of convertible notes with new investor, Shanghai Sol-millennium Medical Products Co for gross proceeds AUD 300,000 on July 31, 2014. The notes are unsecured and will bear interest at 8% per annum and will be capitalised until conversion or the maturity date. The notes will mature in 36 months from the date of issuance and are to be drawn periodically from July 31, 2014 until February 23, 2015.

The notes will be redeemable after 24 months from the date of issuance. The notes will be convertible into common shares of the company at a conversion price equal to lower of AUD 0.05 per share or 30 trading day volume weighted average price prior to conversion notice, with a minimum conversion price of AUD 0.025 per share. The company may issue maximum of 13,650,000 common shares to the investor upon conversion of the notes.