Benzinga | Jan 5, 2022 07:48AM EST

Integrated Media Technology Limited Enters Convertible Note Purchase Agreements With Eight Individual Investors To Raise $10M

Integrated Media Technology Limited ("IMTE" or "Company") (NASDAQ:IMTE), informs that the Company raise funds to support the acquisition and building out of manufacturing infrastructure.

On January 3, 2022, the Company entered into convertible note purchase agreements with 8 individual investors outside the United States to raise a total of US$10 million by the issuance of US$10 million convertible notes ("Note"), subject to closing. The Note bears interests at 6% per annum maturing in 2 years from the date of issuance of the Note. The holder of the Note has the right to convert the principal amount to shares in the Company at a fixed conversion price of US$3.12 per share, subject to adjustment, over the term of the Note. Under the Note, the holder of the Note cannot convert the shares in the Company if such conversion would take the noteholder over 4.99% shareholding in the Company.

In addition, the noteholder will also receive a warrant representing 80% of the amount of the Note, raising an additional US$8 million if all the warrants are exercised. The warrants are for a term of 2 years from the date of the convertible notes and can be exercised at US$3.74 for each share. Under the warrant agreement, the warrant holder cannot exercise the warrant to subscribe for shares in the Company if such exercise would take the warrant holder over 4.99% shareholding in the Company.

The use of the proceeds from this fund raise is to support the acquisition and building out of manufacturing infrastructure and working capital of the Company.