Fitell Corporation Announces Private Placement of US$3.6 Million of Senior Unsecured Convertible Notes – Fitell (NASDAQ:FTEL)
TAREN POINT, Australia, Jan. 19, 2024 (GLOBE NEWSWIRE) — Fitell Corporation, an online retailer of gym and fitness equipment in Australia, has recently disclosed its successful private placement of senior unsecured convertible notes. The company entered into a securities purchase agreement with an investor, issuing a three-year promissory note worth US$3.6 million. The placement, exempt from registration requirements, aims to raise funds for Fitell’s strategic business goals, with a keen focus on working capital.
The convertible notes, maturing on January 15, 2027, will bear an annual interest rate of 8%. Investors will have the option to convert the principal amount into Fitell’s ordinary shares based on the lowest closing price of the company’s shares in the five trading days preceding the conversion, with a minimum conversion price of $0.80 per share.
In addition to the senior unsecured convertible notes, the private placement also includes warrants entitling the investor to purchase up to 5,645,455 ordinary shares of Fitell at an exercise price of $1.056 per share—a representation of 120% of the per share price as of the issue date, January 15, 2024.
Fitell Corporation, through its subsidiary GD Wellness Pty Ltd, is a prominent online retailer of gym and fitness equipment in Australia. With a diverse brand portfolio comprising Muscle Motion, Rapid Motion, and FleetX, the company offers an extensive range of products to meet the fitness needs of its customers.
Regarding the private placement, Fitell CEO, John Smith, expressed optimism about the future of the company’s strategic goals. This private placement will provide us with the necessary capital to support our ongoing operations and further expand our footprint in the fitness equipment market. We are excited about the prospects of this investment and the opportunities it will unlock for Fitell.
Fitell intends to utilize the net proceeds from the private placement to bolster its working capital and enhance its overall business performance. By leveraging the funds raised, the company aims to deliver an enhanced fitness and wellness experience to its customers while solidifying its position as a leading online retailer in Australia.
Fitell’s private placement is available exclusively to accredited investors and is compliant with the Securities Act regulations. This press release serves as an informational announcement and does not constitute an offer to sell or a solicitation to buy any securities of Fitell in the United States, unless registered or exempt from registration.
For more information about Fitell Corporation and its range of fitness equipment, please visit the company’s website at www.fitellcorp.com.
Forward-looking Statements:
This press release contains forward-looking statements that reflect the Company’s current expectations and projections about future events. While the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cautions investors that actual results may differ materially from the anticipated results. The Company encourages investors to review other factors that may affect its future results.
