Sprintex Launches $1.075M Convertible Note Raise to Fund Sales Team Expansion
Sprintex launches $1.075 million convertible note issue to accelerate sales expansion
Sprintex Limited has announced the launch of a $1.075 million convertible note issue to fund working capital, sales team expansion, and customer order fulfilment. The company is issuing 1,075,000 convertible notes at a face value of $1.00 per note, with maturity set for 30 June 2027 and an annual interest rate of 8.0%. Sharewise Capital Pty Ltd acted as sole lead manager to the raise.
The capital injection supports commercial execution at a critical growth phase without immediate equity dilution, allowing the clean air compressor and ultra high-speed electric motor manufacturer to scale its revenue-generating operations.
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How the convertible note structure works
A convertible note is a debt instrument that allows investors to convert their holdings into ordinary shares under specified conditions. Noteholders can elect to convert all or part of their notes into fully paid ordinary shares at any time after 30 June 2026 and prior to the 30 June 2027 maturity date.
The conversion price is calculated at a 10% discount to the 15-day volume weighted average price (VWAP) of Sprintex shares immediately prior to conversion. A floor price of $0.072 per share protects against excessive dilution if the share price falls significantly. At this minimum conversion price, the maximum number of shares issuable on full principal conversion would be 14,930,556 shares.
The floor price mechanism ensures that even in adverse market conditions, dilution remains capped at a predetermined level. The discount to VWAP incentivises noteholders to become shareholders, aligning their interests with existing equity holders as the company pursues its commercial objectives.
The three-step conversion process works as follows:
- Hold the convertible note and receive 8.0% annual interest, paid quarterly in cash
- Elect to convert after 30 June 2026 by delivering a conversion notice to the company
- Receive fully paid ordinary shares at a 10% discount to the 15-day VWAP, subject to the $0.072 floor price
Key terms at a glance
| Term | Details |
|---|---|
| Offer Size | $1.075 million |
| Face Value | $1.00 per note |
| Maturity | 30 June 2027 |
| Interest | 8.0% per annum, paid quarterly |
| Conversion Floor | $0.072 per share |
| Maximum Shares on Conversion | 14,930,556 shares (at floor price) |
The company retains the right to redeem all or part of the outstanding note amount on not less than five business days’ notice after 30 June 2026, though holders may elect to convert during the notice period. Redemption otherwise occurs upon a change of control, event of default, or at maturity.
Funding to drive commercial momentum
Funds raised under the convertible note issue will be directed toward four key areas:
- General working capital purposes
- Costs of the offer
- Expansion of the sales team
- Fulfilment of customer orders
Sales team expansion signals commercial scaling intent, positioning the company to convert pipeline opportunities into revenue. Customer order fulfilment suggests existing demand that requires working capital support to execute.
Sharewise Capital Pty Ltd received a 2.0% management fee and a 4.0% selling fee on the total capital raised, representing a 6.0% total fee structure. The capital raise was conducted using the company’s available placement capacity under ASX Listing Rule 7.1, targeting professional and sophisticated investors selected by the lead manager.
Funds directed toward revenue-generating activities such as sales expansion and order fulfilment indicate a focus on commercial execution rather than purely administrative purposes, aligning capital deployment with near-term growth objectives.
Company snapshot
Sprintex specialises in the engineering, research, product development, and manufacturing of ultra high-speed electric motors and clean air compressors. The company operates across two primary sectors: industrial applications (wastewater treatment, aquaculture, paper milling, pharmaceuticals) and automotive applications (fuel cell compressors for hydrogen and natural gas fuel cells, hybrid vehicle systems).
The company’s G Series blowers address high-speed air movement requirements in industrial settings, whilst its fuel cell compressor development targets clean energy applications. In the automotive realm, Sprintex focuses on enhancing hybrid and petrol vehicles with high-speed electric motor-driven compressors.
The capital raise supports a company operating in high-growth clean technology sectors with diversified end-market exposure, reducing reliance on any single application or customer segment.
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What comes next for Sprintex
The convertible notes will be issued on or about 1 May 2026, with the following key dates establishing a clear 14-month timeline for capital structure evolution:
- Issue Date: On or about 1 May 2026
- First Interest Payment: 30 June 2026
- Conversion Window Opens: 30 June 2026
- Maturity Date: 30 June 2027
Interest accrues daily on the outstanding principal amount and is payable quarterly in arrears in cash, with the first payment falling on 30 June 2026 and each subsequent calendar quarter thereafter up to and including the maturity date.
The conversion window opens from 30 June 2026, allowing noteholders to convert their holdings into ordinary shares at any time prior to maturity. This timeline gives investors visibility on when potential equity dilution may occur and under what pricing conditions, whilst providing the company with a predictable capital structure evolution path through mid-2027.
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