Scout Security Limited announced a private placement of senior secured notes for gross proceeds of up to AUD 4,000,000 on April 28, 2023. The notes shall bear simple interest at 12.0% per year. The accrued interest shall be payable monthly by the company.

Principal payments will begin upon the first anniversary of the first issued note and will be amortized over a period of four years. any remaining balance shall be due upon the earlier to occur of 60 months from the date of issuance, a change of control or an event of default. the company may prepay the notes at any time subject to a 1% pre-payment penalty applied to the then outstanding principal balance of the notes.

the notes will be secured by all the assets of the company and be senior to all other debts by the company. The company will issue an initial tranche of warrants shall be issued upon the issuance of any note in 15 warrants and second tranche exercisable by holder for a period of 3 years following the issuance of their note. These warrants shall be exercisable at $0.05 AUD per warrant by an Investor for a period of 3 years following the issuance of their note.