Enlitic (ASX:ENL) has secured commitments for a capital raise of $8 million through the issuance of secured convertible notes to a group of sophisticated investors.
Approximately $2.6 million will be received immediately in the first tranche, with the remaining $5.4 million subject to shareholder approval.
The convertible notes, which mature on 30 September 2026, will be secured by a first-priority interest over all of Enlitic’s present and future tangible and intangible assets.
Holders may convert the notes into CHESS Depositary Interests in the company at an initial conversion price of $0.025 per note, with a post-maturity conversion price set at a 25% discount to the 10-day volume-weighted average price of CDIs.
The notes accrue interest at 14% per annum until maturity, rising to 18% after the maturity date or in the event of default, with interest capitalised unless otherwise elected.
CEO Michael Sistenich said the funding would allow Enlitic to "remain focused on executing its strategy, including progressing OEM partnerships, advancing customer deployments, and continuing to develop our technology platform for scalable global deployment."
He added that the company is maintaining disciplined execution as it works toward cash flow breakeven.
Proceeds from the capital raise will support the commercialisation and scaling of Enlitic's AI-enabled healthcare solutions and provide working capital for ongoing operations.