Highlights

  • Dotz Nano has executed a third deed of variation to its Convertible Securities Agreement with Investment funds managed by Mercer Street Capital Partners.
  • The revised arrangement extends the Maturity dates of the second, third and subsequent tranches of convertible notes to 31 March 2027.
  • The agreement provides for the repayment of the first Tranche convertible notes.
  • New conversion limitations will apply until 30 September 2026 unless the company achieves a VWAP above $0.07 for five consecutive trading days.

Dotz Nano Ltd (ASX:DTZ) has announced amendments to its existing Convertible Securities Agreement with investment funds managed by Mercer Street Capital Partners, introducing revised maturity dates and additional conversion-related provisions.

The company confirmed that it has entered into a third deed of variation covering the financing arrangement originally announced in February 2024 and subsequently amended in November 2024 and November 2025. The latest variation includes an extension of certain convertible note maturities and modifications to conversion terms while leaving the remaining conditions unchanged.

During the afternoon session on 2 June 2026, Dotz Nano shares traded at AUD 0.043, down 2.27% for the day. Over the past 12 months, the stock remains 14.00% lower.

Company Overview

Dotz Nano operates in the material science and nanotechnology sector, developing technologies aimed at addressing industrial and environmental challenges. The company's activities include the development of advanced sorbent materials designed for carbon capture applications.

A key focus area for Dotz is its DotzEarth platform, which is aimed at supporting direct air capture and point-source carbon dioxide mitigation initiatives. The company is working to advance technologies intended to improve the economic viability of carbon capture and carbon removal solutions.

The latest financing amendment forms part of the company's broader capital management framework as it continues pursuing its strategic objectives.

Convertible Securities Agreement Updated

According to the announcement, the latest variation relates to the Convertible Securities Agreement between Dotz and investment funds managed by Mercer Street Capital Partners, specifically Mercer Street Global Opportunity Fund LP and Mercer Street Global Opportunity Fund II LP.

The revised arrangement introduces several changes designed to adjust the timing and administration of the existing financing structure.

One of the key amendments provides for the repayment of the First Tranche Convertible Notes. At the same time, the maturity dates of the Second Tranche, Third Tranche and Subsequent Tranches of Convertible Notes have been extended.

Under the updated terms, these convertible securities will now mature on 31 March 2027.

The extension effectively lengthens the financing timeline compared with the previous arrangement while maintaining the broader structure of the agreement.

New Conversion Provisions Introduced

In addition to extending maturity dates, the variation introduces certain conversion limitations that will remain in effect through 30 September 2026.

The company stated that these limitations may cease earlier if a Volume-weighted average price (VWAP) greater than AUD 0.07 is achieved for five consecutive trading days.

While the announcement did not alter the overall financing framework, the inclusion of conversion restrictions represents a notable change within the revised agreement.

Management also secured additional flexibility through the introduction of a provision that allows the company to settle future conversion notices in cash.

This option provides an alternative mechanism for handling future conversion events under the agreement.

Apart from these specific amendments, Dotz confirmed that all other terms and conditions associated with the convertible notes remain unchanged.

Extension Pushes Financing Timeline Into 2027

The maturity extension represents the most significant component of the latest agreement.

By extending the Second, Third and Subsequent Tranches to 31 March 2027, Dotz has increased the duration of the existing financing arrangement.

Convertible notes are commonly used as a source of funding that may later convert into Equity under specified conditions. In this case, the company has chosen to renegotiate certain terms with its existing financing partner rather than introduce an entirely new arrangement.

The revised timeline provides additional time before maturity dates are reached while preserving the overall structure of the agreement already in place.

The company did not announce any changes to interest rates, conversion pricing mechanisms or other core note provisions as part of the latest variation.

Mercer Continues as Financing Partner

The agreement also highlights the ongoing relationship between Dotz Nano and Mercer Street Capital Partners.

The financing arrangement has undergone several amendments since its initial announcement in February 2024, with the latest variation representing the third formal update between the parties.

Chief Executive Officer Nati Harpaz commented that the maturity extension reflects Mercer’s continued support for the company and its strategic direction.

Management noted that the investor's ongoing involvement represents continued backing of both the company's technology initiatives and its longer-term business plans.

The company specifically referenced confidence in the development of its DotzEarth carbon capture technology as well as its broader execution strategy.

Capital Management Remains a Key Focus

For emerging technology companies, financing flexibility often plays an important role in supporting operational activities and development programs.

The latest amendment demonstrates Dotz's focus on managing existing financing arrangements while maintaining access to capital under previously established structures.

The addition of a cash settlement option for future conversion notices may provide the company with greater flexibility when dealing with future financing events.

Meanwhile, extending maturity dates to March 2027 reduces the immediacy of upcoming note obligations under the existing agreement.

While the announcement does not alter the company's operational strategy or technology development plans, it does represent a notable update to the structure and timing of its financing arrangements.

DotzEarth Remains Central to Long-Term Strategy

Alongside the financing update, Dotz reiterated its focus on advancing technologies aimed at carbon capture and emissions reduction.

The company's DotzEarth platform remains one of its principal development initiatives and is designed to support direct air capture and point-source carbon dioxide mitigation applications.

These technologies are intended to address industrial and environmental challenges by improving the effectiveness and economic feasibility of carbon removal solutions.

Management's comments accompanying the announcement referenced the technology as a key element underpinning the company's strategic outlook.

As a result, the financing amendment may be viewed within the broader context of supporting ongoing technology development and commercialisation efforts.

What This Means for Investors

The latest announcement from Dotz Nano centres on amendments to its existing financing arrangements rather than operational developments.

The company has extended the maturity dates of its Second, Third and Subsequent Tranches of Convertible Notes to 31 March 2027, introduced conversion limitations through 30 September 2026, provided for repayment of the First Tranche Convertible Notes, and secured the option to settle future conversion notices in cash.

Importantly, all other terms and conditions of the convertible notes remain unchanged.

Investors will likely continue monitoring future developments relating to the company's capital management activities, financing arrangements and progress in advancing its carbon capture technologies.