Papyrus lines up A$500K in convertible loans to fund fibre push
What's the deal? Papyrus AustraliaDealroom has a profile for this one. Try Dealroom → (ASX: PPY) has secured up to A$500,000 (about $352,827) through four unsecured loan agreements with professional and sophisticated investors. The lenders — Maryton Australia, Antanas GuogaDealroom has a profile for this one. Try Dealroom →, the Muchnicki Family TrustDealroom has a profile for this one. Try Dealroom →, and the Roseman Retirement FundDealroom has a profile for this one. Try Dealroom → — will each advance up to A$125,000 on request.
How it works: Interest accrues at 1.5% per month until each loan is repaid or converted. Subject to shareholder approval, the outstanding amounts convert into Tranche 2 Unsecured Convertible Notes at A$1.00 apiece.
Why now? The facility adds to the A$500,000 in investor loans Papyrus disclosed in December 2025, which converted into secured and unsecured convertible notes. The company cannot issue further notes under the earlier unsecured facility but may raise a further A$536,154 in secured notes, pending shareholder approval.
The fine print: The Muchnicki Family Trust is a related party, as it is controlled by a director of L39 CapitalDealroom has a profile for this one. Try Dealroom →, itself a related party of Papyrus. The other three lenders are unrelated to the company.
The middleman: L39 Capital introduced the lenders and will earn a 6% cash success fee on the gross funds raised. Subject to approval, it will also receive 8,333,333 options exercisable at A$0.015, expiring three years from grant.
The signal: At roughly $352,827, this is a modest raise, sitting in the lowest percentiles for deal size. For a small-cap ASX company, stacked convertible loans and broker-driven introductions signal a reliance on incremental, approval-dependent financing to keep operations funded.
Read more: Listcorp
Image credit: Generated with Gemini
