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 is aimed at providing AVA with growth capital and a strategically aligned partner to support the company’s U.S. expansion strategy.
The funding agreement with Hale Capital Management includes a A$7 million secured convertible note financing facility. AVA will have immediate access to an initial A$2.98 million, with a further A$4.02 million available subject to shareholder approval. 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. Additionally, AVA proposes to issue 5-year unlisted warrants to raise up to A$5.6 million, also at an exercise price of A$0.1234.
Hale Capital Management is a U.S.-based investment firm focused on national security and technology businesses. They bring extensive experience in supporting companies scaling into U.S. markets and have deep relationships across critical infrastructure owners, telecommunications, utilities, and government customers. Hale views AVA as a long-term strategic partner, aligned with the objective of building a globally relevant critical risk and security technology platform, anchored by a strong U.S. presence.
The investment will support AVA’s U.S. expansion strategy, including scaling commercial and operational capabilities, accelerating deployment of solutions across U.S. critical infrastructure markets, and leveraging Hale’s network to shorten sales cycles and expand customer penetration. Hale intends to nominate an experienced industry executive to join AVA’s Board of Directors in early 2026. Shareholder approval will be sought for the issue of Tranche 2 Notes and Tranche 2 Warrants, with a meeting expected no later than 27 March 2026.