AVA Risk Group Limited (ASX: AVA) has announced a strategic investment of up to A$7.0 million from Hale Capital via a Convertible Loan Note, along with up to A$5.6 million through associated Warrants. AVA Risk Group is a global leader in providing technologies and services to protect critical and high-value assets and infrastructure. It operates through three business segments – Detect, Access and Illuminate.
The transaction provides AVA with growth capital and a strategic partner to support its U.S. expansion strategy. The Convertible Note has a conversion price of A$0.1234 per ordinary share, representing an 81% premium to AVA’s last closing share price on 30 December 2025. Subject to shareholder approval, AVA proposes to issue 5-year unlisted warrants to raise up to A$5.6 million, with an exercise price of A$0.1234, also an 81% premium to the closing share price.
Hale Capital Management, a U.S.-based investment firm, brings extensive experience supporting companies scaling into the U.S. federal, state, and enterprise markets. Hale intends to nominate an experienced industry executive to join AVA’s Board of Directors in early 2026. AVA views Hale as a long-term strategic partner, aligned with the company’s objective of building a globally relevant critical risk and security technology platform, anchored by a strong U.S. presence.
The funding will be used for AVA’s working capital, general corporate purposes, and future growth initiatives, including expansion into U.S. markets. Subject to shareholder approval, AVA will issue Hale up to 45,380,875 unlisted warrants, exercisable into one fully paid ordinary share of AVA at A$0.1234. Financial close is expected on or prior to 31 January 2026, with a shareholder meeting anticipated no later than 27 March 2026 to approve the issue of Tranche 2 Notes and Tranche 2 Warrants.