InFocus Group (ASX: IFG) Secures $1 Million Financing Facility Extension
InFocus Group Holdings Limited (ASX: IFG) has announced it has secured an additional $1 million in funding from institutional investor Obsidian Global GP LLC. This InFocus Group financing facility extension, confirmed on 17 November 2025, amends a pre-existing convertible note arrangement and provides essential working capital for the company’s expansion into Thailand’s software solutions market and its new ventures in the iGaming sector. This latest agreement increases the total available funding to $1.45 million.
Strategic Partnership Enhanced Through Second Facility Amendment
This extension marks the second enhancement to the company’s financing relationship with Obsidian since the original facility was established in May 2024. InFocus has already drawn $450,000 from the initial arrangement, with the new $1 million tranche accessible subject to shareholder approval at an upcoming extraordinary general meeting.
As of the announcement, InFocus Group was trading at 1.1 cents per share, with a market capitalisation of approximately $4.96 million. The company’s cash position was reported at $1.26 million as at 31 October 2025, providing a solid base for deploying the new capital toward identified growth opportunities. The group operates through several business units, including InFocus Analytics, the Frugl Grocery app, and software consultancies Onify and Prodigy9, alongside strategic ventures in digital assets and iGaming.
What are the Key Financial Terms of the Extended Facility?
The convertible note is structured to provide InFocus with flexible growth capital while incorporating protections for investors. This arrangement signals institutional confidence in the company’s multi-sector technology strategy.
| Facility Component | Amount (AUD) | Current Status |
|---|---|---|
| Previously Drawn Facility | $450,000 | Already accessed |
| New Facility Extension | $1,000,000 | Pending shareholder approval |
| Total Facility Value | $1,450,000 | Combined availability |
Conversion Mechanics:
- Fixed Conversion Price: 3 cents per share, a 170% premium to the current trading price.
- Conversion Restriction Period: Until 1 February 2026, unless the share price exceeds 4 cents.
- Facility Fee: 2%, paid via the issue of 1.81 million shares at 1.1 cents each.
- Maturity Period: 18 months from the issue date.
- Note Currency: USD at $1.15 per note.
How Does the Convertible Note Structure Work?
The agreement includes a sophisticated conversion mechanism that balances immediate capital access with protection against excessive shareholder dilution, a common structure for growth-stage technology companies.
Company Benefits:
- Interest-free funding during normal operations, with interest only applicable in default scenarios.
- Delayed dilution impact due to conversion restrictions until February 2026.
- Strategic flexibility from an 18-month maturity period.
- Institutional validation demonstrated by Obsidian’s continued support.
Investor Protections:
- A General Security Agreement provides debt protection.
- Multiple conversion price options, including fixed and variable mechanisms.
- Anti-dilution provisions are included through negative covenants.
- Early redemption triggers are linked to significant future capital raises.
The variable conversion price allows conversion at 90% of the average of the lowest five daily VWAPs (Volume Weighted Average Prices) during the 20 trading days prior to conversion, or the fixed price of 3 cents, whichever is lower. This option is only exercisable by the noteholder after 1 March 2026, and only when any 20-day VWAP is below the fixed price. Furthermore, Obsidian cannot convert notes if doing so would result in it holding more than 20% of total shares on issue.
What Strategic Growth Opportunities Will the Funding Support?
The additional working capital from this facility is earmarked for specific strategic initiatives, primarily focusing on established operations in Thailand and emerging opportunities in the iGaming sector.
Thailand Software Solutions Expansion
InFocus’s Thailand operations are a growing revenue stream within Southeast Asia’s expanding technology market. The company provides software consultancy and development services, and the new funds will support the scaling of these operations to meet rising client demand.
iGaming Venture Development
Through its InFocus Gaming Technologies division, the company is targeting the expanding global iGaming market. This funding will support the development of its iGaming solutions and help establish a market presence in this high-growth sector.
How Does the InFocus Group Financing Facility Extension Compare to Alternative Capital Raising Methods?
For a micro-cap technology stock like InFocus, this convertible note arrangement offers several advantages over traditional equity or debt financing.
Advantages Over Direct Equity Fundraising:
The structure delays shareholder dilution until conversion occurs, with the 170% premium on the fixed conversion price offering significant protection against near-term value erosion. This suggests institutional confidence in the company’s future growth.
Benefits Compared to Traditional Debt:
The facility is interest-free during normal operations, reducing pressure on cash flow. The 18-month maturity provides flexibility, while early redemption provisions ensure investors can realise returns if the company raises significant additional capital in the future.
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