Highlights

• Papyrus Australia secured access to an additional AU$500,000 through four unsecured loan facilities provided by professional and sophisticated investors, adding to the AU$500,000 of investor loans obtained in December 2025.
• Each participating lender has committed up to AU$125,000, with interest accruing at 1.5% per month until the relevant amount is either repaid or converted.
• Funding is earmarked for commercialisation initiatives, working capital and delivery of Papyrus’ contract with TBS Mining Solutions for a biodegradable version of its patented Collar Keeper® products.

Papyrus Australia Limited (ASX: PPY) is an Australian technology company focused on converting agricultural waste into sustainable fibre-based materials and biodegradable products. The company is progressing commercial applications for its technology as it works to broaden production opportunities and establish scalable uses for environmentally focused materials.AU$500,000 Loan Facilities Add Near-Term FundingPapyrus has entered into four separate unsecured loan agreements that collectively provide access to as much as AU$500,000. Four separate facilities, each limited to AU$125,000, have been arranged with Maryton Australia, Antanas Guoga, the Muchnicki Family Trust through its trustee J G M Investment Group, and the Roseman Retirement Fund through trustee Davsam. Papyrus can request some or all of the committed amount when required, with the relevant lender required to transfer the requested capital within five business days. This arrangement gives the company flexibility to draw funding according to its immediate commercial and operating requirements rather than receiving the entire facility upfront.Fresh Capital Targets Commercial ExecutionThe financing is directly linked to Papyrus’ efforts to convert its technology into larger-scale commercial activity. Management plans to use the available funds to progress commercialisation programs and provide additional working capital. Importantly, part of the funding will support execution of the company’s contract with TBS Mining Solutions Pty Ltd, under which Papyrus is responsible for manufacturing and supplying a biodegradable version of TBS Mining Solutions’ patented Collar Keeper® products. The funding therefore provides additional resources for a defined commercial opportunity while strengthening Papyrus’ capacity to undertake broader scale-up initiatives.Loans Carry a 1.5% Monthly Interest RateThe financing initially takes the form of unsecured debt, with each loan accruing interest at 1.5% per month until repayment or conversion. Pending shareholder approval, the amount owing under the facilities, including accumulated interest, is proposed to be exchanged for Tranche 2 Unsecured Convertible Notes issued at AU$1.00 each. Following the necessary approval, those notes are expected to be issued within ten business days. The structure provides Papyrus with near-term access to capital while leaving the proposed conversion into longer-dated securities dependent on shareholder consent.Convertible Notes Establish a Clear Route to Equity ConversionThe proposed Tranche 2 Unsecured Convertible Notes will mature two years after issuance and accrue interest at 1.0% per month. Interest accumulated each quarter will be added to the outstanding note balance unless Papyrus chooses to settle it in cash. If conversion occurs within the first 12 months after issue, the conversion price will be AU$0.009 per share. For conversions after that period, pricing will generally be based on 80% of the five-day volume-weighted average share price, subject to a maximum of AU$0.009 and a minimum of AU$0.0075. Converted shares will rank equally with the company’s existing ordinary securities.Completion Remains Conditional on Shareholder ApprovalPapyrus plans to request shareholder approval at its 2026 Annual General Meeting to issue up to 535,000 Tranche 2 Unsecured Convertible Notes and 8,333,333 broker options. Separate approval is required for the Muchnicki arrangement due to its connection with a director of L39 Capital, a related party of Papyrus. Should the required approvals remain outstanding by 1 December 2027, all loan principal and accumulated interest would become payable in full within the following 30 business days.Funding Strengthens Papyrus’ Commercialisation PlatformThe additional AU$500,000 facility gives Papyrus greater financial flexibility while it works to translate its sustainable-materials technology into commercial production. Rather than being allocated solely to general corporate expenditure, the funding has a clear operational purpose through support for commercialisation, working capital and delivery of the TBS Mining Solutions contract. The immediate focus will be on converting available funding into successful manufacturing execution and scale-up activity. Progress on the TBS contract, shareholder approval for the proposed convertible notes and subsequent commercial expansion will therefore be important indicators of how effectively the latest financing supports Papyrus’ next stage of development.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au