MetalsTech Limited (ASX:MTC) announced a private placement of 10,000,000 fixed price convertible notes at a price of AUD 2.50 per convertible note for proceeds of AUD 2,500,000 and 7,031,250 common shares at a price of AUD 0.16 for proceeds of AUD 1,125,000, for gross proceeds of AUD 3,625,000 on April 29, 2020. The company has signed a strategic finance agreement with existing individual investor Zhengrong Chen for the notes and will involve participation from sophisticated investors for the shares, including directors of the company for AUD 150,000, subject to shareholder approval. The notes have a face value of AUD 0.25, will be issued at par, and has a fixed conversion price of AUD 0.25. The company may force conversion under certain conditions. The term of the notes is 2 years and carries an interest rate of 10% per annum, to be paid in quarterly. Noteholder has the right to convert any of the notes to fully paid shares in the company on a one for one basis subject to the noteholder providing the company with 10 days’ written notice, the noteholder having not been provided with a redemption notice prior to the noteholder notice; and the company securing shareholder approval for the issue of the shares. The company has the right to convert any of the notes to fully paid shares in the company on a one for one basis if the 20-day volume weighted average price of the company shares exceeds AUD 0.40 during the term. If the notes have not been repaid or converted before the end of the term, the company must repay the face value of the notes together with any outstanding interest. The company may redeem any of the notes before the end of the term by providing the note holder with 7 days’ notice, the redemption notice, and repaying the face value of the note together with a redemption premium of 2%. The notes are not transferrable without the written consent of the company. The note holder agrees not to short sell the company shares at any time. Any shares issued to the note holder pursuant to a conversion will be subject to 12 months voluntary escrow from the date of issue. The notes are secured against the Cancet Lithium project owned by Metalstech Cancet Lithium Inc., a wholly owned subsidiary of the company, incorporated in Quebec, Canada. The company expects to issue shares on May 6, 2020 and convertible notes on June 1, 2020.