Novatti Group Limited (ASX:NOV) announced that it has signed a binding term sheets for the issue of convertible notes for gross proceeds of AUD 2,275,000 on November 7, 2019. The company will issue 2,275,000 notes at a price of AUD 1 per share. The company will issue one free-attaching option to be issued for each AUD 1 note with a AUD 0.25 exercise price expiring on October 30, 2022. The transaction will include participation from professional and sophisticated investors. The conversion price will be at lower of AUD 0.25 or the lowest capital raising price prior to maturity. The notes will mature on July 30, 2021 subject to 12 months roll-over at the noteholder’s election. The notes carries a coupon rate of 9% per annum. The notes are secured by company's share capital in its wholly-owned subsidiary, Novatti Inc. The transaction is expected to closed on or about November 15, 2019.