Sprintex Ltd Locks in $870K Underwriting Backstop With Debt Extension Pending
Sprintex locks in underwriting support to secure expiring options funding
Sprintex Limited (ASX: SIX) has entered binding underwriting agreements covering a portion of its expiring unquoted options, creating a pathway to secure up to A$870k in additional funding before fees and costs. The agreements, announced on 29 June 2026, are backed by two substantial shareholders.
Alongside the underwriting arrangements, Sprintex confirmed it has reached an agreement with China Automotive Holdings Limited (CAHL) to extend the maturity date of its existing convertible note. The note carries a principal amount outstanding of A$1,854,091 and would be extended to 30 June 2027, subject to shareholder approval.
Taken together, the two transactions are aimed at shoring up the company’s balance sheet. Support from two substantial shareholders provides certainty of capital while deferring a near-term repayment obligation.
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Underwriting agreements explained
There are 20,250,000 Expiring Options remaining unexercised, each exercisable at A$0.10 and expiring at 5:00pm AWST on 30 June 2026. The underwriting arrangements cover a portion of these, providing the company with a funding pathway of up to A$870k if option holders do not exercise prior to expiry.
The underwriters cover a combined total of 8,700,000 options. Sprintex has agreed to pay each underwriter an underwriting fee equal to 5% of the relevant underwritten amount.
| Underwriter | Status | Options Underwritten | Value (up to) |
|---|---|---|---|
| Euro Mark Limited | Substantial shareholder | 2,000,000 | A$200k |
| China Automotive Holdings (CAHL) | Substantial shareholder | 6,700,000 | A$670k |
| Total | — | 8,700,000 | A$870k |
How the shortfall mechanism works
The structure determines how exercised options affect the underwriting commitment:
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Options exercised by holders before expiry reduce the total number of Expiring Options remaining unexercised.
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The underwriting commitments will only be reduced to the extent that the remaining shortfall is less than the total underwritten amount of 8,700,000 options.
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Any shortfall following expiry is applied first to Euro Mark (up to 2,000,000 options), then to CAHL (up to 6,700,000 options).
This mechanism provides a funding floor for Sprintex even if option holders choose not to participate, with the underwriters stepping in to take up the shortfall securities.
Convertible note extension with CAHL
Separately, Sprintex has agreed with CAHL to extend the maturity date of its existing convertible note, which has a principal amount outstanding of A$1,854,091. The maturity would move from 30 June 2026 to 30 June 2027, with all other terms remaining unchanged.
Importantly, the extension is subject to shareholder approval. If approved, deferring the maturity removes a near-term repayment obligation, easing balance sheet pressure across the coming 12 months.
What expiring options and underwriting mean for investors
For readers less familiar with the terminology, a short explainer may help clarify the significance of these arrangements.
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Unquoted options: These are options not traded on the ASX. An option exercisable at A$0.10 means the holder can buy one share by paying A$0.10. If the share price sits below that figure, holders have little incentive to exercise.
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Underwriting agreement: This is a commitment by a party to take up any shortfall securities not subscribed for by others. It effectively guarantees the company receives a defined amount of capital regardless of whether option holders participate.
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Why it matters here: Substantial shareholders Euro Mark and CAHL backing the shortfall provides certainty of capital while signalling alignment with the company.
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Convertible note: This is a form of debt that can convert into equity under agreed terms. Extending the maturity date defers when the principal must be repaid, which can support cash flow management.
Why this matters for the Sprintex investment case
The two transactions function as a balance-sheet strengthening event. The arrangements provide a pathway to additional funding of up to A$870k.
Continued backing from two substantial shareholders may be read as a confidence signal, given both Euro Mark and CAHL have committed capital to the arrangements. The convertible note extension, if approved, defers a material repayment and improves near-term financial flexibility.
Sprintex, established in Australia in 2003, specialises in the engineering and manufacturing of ultra high-speed electric motors and clean air compressors. Its portfolio spans the industrial sector (including G Series blowers and fuel cell compressors) and the automotive sector.
Its portfolio spans the industrial sector (including G Series blowers and fuel cell compressors) and the automotive sector, with the South Korea hydrogen distribution deal signed in March 2026 reflecting its positioning as a specialist compressor supplier across more than 20 hydrogen development programmes globally.
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Next steps and key dates
The following timeline summarises the disclosed milestones:
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Expiring Options lapse at 5:00pm AWST on 30 June 2026, with any shortfall triggering the underwriting commitments.
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The convertible note extension to 30 June 2027 remains pending shareholder approval, with the timing of the relevant meeting not disclosed in the announcement.
The arrangements were authorised for release by the Board of Sprintex Limited.
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