MyEco Group Secures $1.6 Million via Convertible Notes to Fund Growth and Restructuring

Highlights:

• MyEco Group (ASX: MCO) raises $1.6 million via unsecured convertible notes to support growth and restructuring.
• Funds to help reduce annual fixed costs by up to $3 million through operational changes.
• Convertible notes offer 10.5% interest and are convertible at a discount, with capped pricing.

Strategic Capital Raise to Support Expansion

MyEco Group Limited (ASX: MCO), a specialist in sustainable packaging solutions, has successfully raised $1.605 million through an issue of unsecured convertible notes, backed by sophisticated investors. At the time of writing, this funding initiative is aimed at supporting the company’s operational restructure and growth strategy, while also minimising dilution for existing shareholders amid current market conditions.

Convertible Notes to Boost Restructure and Cost Reduction

The funds raised will help execute MyEco Group’s operational restructuring plan, which is projected to slash annual fixed costs by $2.5 million to $3.0 million. This includes partnering with advanced converters in Southeast Asia to cut production expenses, relocating large-scale pilot production equipment from Melbourne to Nanjing, and moving the company’s headquarters to more cost-effective premises in Melbourne.

The convertible notes will accrue 10.5% annual interest, paid quarterly over a three-year term. Investors will be able to convert their notes into shares at a 15% discount to the 14-day VWAP, with a cap of $0.05 and a floor of $0.019 per share. Conversion rights commence 12 months post-drawdown, with full conversion required at maturity.

Strengthening the Balance Sheet

The capital raise complements MyEco Group’s existing $2 million cash reserves (as of April 30, 2025) and an unused $1 million secured debt facility, giving the company added financial flexibility. A portion of the convertible notes—$355,000—was subscribed by company directors, subject to shareholder approval at the upcoming AGM.

CEO Richard Tegoni expressed confidence in the strategic direction, saying the funds will enhance the company’s path to profitability by supporting margin improvement and sustainable growth.

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