Strategic Investment from Sichuan Hebang Biotechnology

Avenira Limited (ASX: AEV) (“Avenira” or “the Company”)”) has secured a Strategic Investment from its largest shareholder, Sichuan Hebang Biotechnology Corporation Limited (SHSE: 603077) (“Hebang”).

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HIGHLIGHTS:

• Avenira Limited( ASX: AEV) (“Avenira” or “the Company”) has secured a Strategic Investment from its largest shareholder, Sichuan Hebang Biotechnology Corporation Limited (SHSE: 603077) (“Hebang”).
• The Strategic Investment comprises:
  • A$4.5 million 2-tranche Placement at an issue price of A$0.006 per new share, with Tranche 2 subject to shareholder approval and any other required regulatory approvals.
  • Pending shareholder approval for Tranche 2 Hebang will provide an unsecured loan of the Tranche 2 proceeds.
  • Funds from the Placement will be used for progressing the Yellow Phosphate study work, Lithium Ferro Phosphate study work and for general working capital.
• As part of the investment, Hebang has the right to appoint an Executive Chairman and two directors to the Board, as well as a Chief Executive Officer and Chief Financial Officer to the management team.

Strategic Investment

• Tranche 1 Placement: Tranche 1 will raise A$1.7 million through the issue of 285,000,000 shares, at an issue price of A$0.006 per new share. These shares will be issued on or around 2 August under the Company’s existing Listing Rule 7.1 (223 million shares) and 7.1A (62 million shares) placement capacity (“Tranche 1”).
• Tranche 2 Placement: Tranche 2 will raise A$2.79 million through the issue of 465,000,000 shares at the same price as Tranche 1 (“Tranche 2”). As the issue of the Tranche 2 shares will mean Hebang has an interest in the issued capital of the Company of greater than 20%, shareholder approval pursuant to Item 7 of Section 611 of the Corporations Act (Cth) 2001 will be required for the issue of shares under Tranche 2. Tranche 2 is also subject to any other required regulatory approvals
• Unsecured loan: Hebang will also provide an unsecured loan of the Tranche 2 placement proceeds pending shareholder approval and any other required regulatory approvals for the Tranche 2 placement. The terms of the loan are:
• Principal - $2.79 million;
• Repayment – Repayment of principal and interest upon the earlier of either the completion of Tranche 2 placement or 12 months
• Interest – 12% pa capitalised and payable on repayment of principal The unsecured loan will be repaid from funds received from the Tranche 2 placement.

If the Shareholders Approval or any other regulatory approval required for Tranche 2 is not obtained by 31 October 2024, given the company’s history of raising capital to date, the directors are confident of the company’s ability to raise additional funds through a placement, rights issue, SPP, convertible note or other capital raising method previously utilized by the Company, when the unsecured loan is due for repayment, on or around September 2025.

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