Peppermint Innovation (ASX: PIL) has formally concluded the Peppermint Innovation dispute settlement with Obsidian Global GP LLC, executing a binding agreement on 29 January 2026 that withdraws the monetary demand and removes legal uncertainty. The digital financial services company, whose shares have been suspended since 7 January 2026, can now pursue funding proposals and apply to lift its trading halt.
The settlement requires staged payments totalling USD 500,000 in cash plus the immediate issuance of 21,305,714 ordinary shares at a deemed price of 0.35 cents per share. Critically, the agreement includes no admission of liability and terminates the convertible securities arrangement with Obsidian upon completion of all instalments.
Settlement structure and payment terms
The three-instalment payment framework provides a manageable timeline for the company whilst resolving all outstanding obligations. Once the final payment is made by 30 April 2026, the convertible securities and share placement agreement with Obsidian terminates, eliminating a potential source of future dilution.
| Instalment | Payment Type | Amount | Due Date |
|---|---|---|---|
| 1 | Share Issuance | 21,305,714 ordinary shares at 0.35 cps | Immediate |
| 2 | Cash | USD 50,000 | 15 March 2026 |
| 3 | Cash | USD 450,000 | 30 April 2026 |
The share issuance represents immediate dilution for existing shareholders, but the structured cash component allows the company to manage liquidity whilst securing new funding. Termination of the convertible securities agreement removes the overhang of potential conversion-based dilution that could have complicated future capital-raising efforts.
What is a dispute settlement and why does it matter for investors?
Corporate disputes create uncertainty around potential liabilities that can weigh on share prices and complicate capital-raising efforts. Settlement agreements typically involve mutual release of claims between parties, agreed payment terms, and no admission of wrongdoing. For listed companies, resolving such matters removes contingent liabilities from the balance sheet and provides management with clarity to pursue growth initiatives.
In this case, the Peppermint Innovation dispute settlement eliminates all continuing monetary claims and contingent liabilities, positioning the company to engage with potential funding partners from a position of certainty. The trading halt, requested on 5 January 2026, was specifically sought to clarify and resolve the monetary demand before market trading resumed.
Key protections secured in the agreement
The settlement terms include several provisions that protect the company’s position and limit ongoing exposure:
- Full release from all claims related to the monetary demand asserted by Obsidian
- No admission of liability by Peppermint Innovation
- No continuing monetary claims or contingent liabilities arising from the settlement
- Termination of the convertible securities agreement with Obsidian upon completion of instalment payments
These protections ensure the settlement represents a complete resolution rather than an ongoing obligation. The absence of any liability admission preserves the company’s position without creating precedent for future claims.
Peppermint signals new funding and growth focus
With the legal uncertainty removed, Peppermint Innovation has stated it is now evaluating proposals for future funding and business expansion. The company operates a mobile banking, payments, and lending platform deployed in the Philippines, targeting digital financial inclusion in a market with significant growth potential.
Management has indicated it will apply to ASX to lift the trading suspension as soon as possible after securing funding confirmation. This positions the company to re-engage with investors and pursue operational expansion in its core Philippine market.
“The Company has now received proposals for future funding and business expansion and is getting on with business.”
Pathway to trading resumption
The sequence to restore trading follows a clear process that management has outlined:
- Settlement executed – Binding agreement finalised with Obsidian on 29 January 2026
- Funding confirmation – Company evaluating proposals received for future capital
- ASX application – Formal request to lift suspension to be lodged after funding secured
- Trading resumes – Company anticipates resumption as soon as possible following ASX approval
This structured approach ensures the company returns to trading with both legal clarity and funding visibility, providing investors with a complete picture of the corporate position.
What this means for PIL shareholders
The Peppermint Innovation dispute settlement removes a significant overhang that triggered the trading halt and suspension in early January. Whilst the issuance of 21.3 million shares represents dilution of approximately 0.35 cents per share, this must be weighed against the removal of legal uncertainty and the termination of the Obsidian convertible securities agreement.
The company’s core business focus on digital financial inclusion in the Philippines remains intact. With proposals for new funding now under consideration, management can redirect attention from dispute resolution to operational execution and market expansion.
The staged cash payment structure, totalling USD 500,000 over three months, provides a manageable obligation that should not materially constrain working capital, particularly if new funding is secured as anticipated. No contingent liabilities remain on the balance sheet following settlement completion.
For shareholders, the key variables to monitor are the timing and terms of any new funding announcement and the subsequent ASX decision on lifting the trading suspension. The resolution positions Peppermint Innovation to move forward with greater certainty than existed during the three-week suspension period.
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