Business
Proposed second secured convertible loan note
Proposed second secured convertible loan note.
About this update from Satsuma Technology Plc
[{"type":"text","content":"\n\n24 June 2025\nTAO Alpha PLC\n(\"TAO\" or \"the Company\")\nProposed second secured convertible loan note with a minimum raise of £100m with initial commitments including those from ParaFi Capital and other investors.\nFollowing the announcements last week of the Company's BTC treasury strategy, the Company has received unprecedented demand, through its lead broker, Fortified Securities, and directly, for participation in the journey of the Company.\nThe board is pleased to announce that a US focused broker, Dawson James Securities (DJS), has been appointed by the Company to work alongside Fortified Securities to help navigate such demand and the ability to execute present and future fundraises in light of various regulatory and legal requirements with US based investors.\nBetween Fortified Securities and DJS, the Company is in the process of securing commitments into a second secured convertible loan note (New Notes) from leading global digital asset investment firm ParaFi Capital and other investors, totalling £20m in initial commitments so far. The New Notes will be in addition to the previously announced £5m raise which was successfully concluded following its announcement on 17 June 2025 (the Initial Raise).\nThe New Notes are anticipated to have the following terms:\n● Secured by a first ranking debenture (in priority to the initial £5m previously announced);\n● No interest or fees accrue on the balance advanced to the Company (except for customary default interest if applicable);\n● Automatic conversion on (a) the approval of the requisite shareholder authorities at a specially convened general meeting and (b) the approval of a secondary prospectus resulting in admission to the Main Market of the resulting ordinary shares in the Company with a longstop date for conversion of 30 September 2025 (the Longstop Date);\n● The conversion price is fixed at £0.01 (one pence) per ordinary share;\n● A maturity date of 90 days from the Longstop Date if an automatic conversion has not been triggered by then.\nThe definitive terms of the New Notes are to be finalised following the closing of the raise and will be dependent on various conditions including consideration of the macro impacts and global conditions. The...