This follows the letter of intent for the issue of 136,893,173 new ordinary shares in TZ to the funds in lieu of repayment of principal and interest on the convertible notes.
The company plans to convene a shareholders meeting to seek the necessary shareholder approvals for Monday, 17 February 2014.
Following its completion, the company will have no debt other than for day to day creditors.
It will also be better positioned to take advantage of any operational opportunities.
The conversion of the notes and accrued interest will result in the issue of 136,893,173 new shares worth $24,075,400.
The conversion of the convertible notes removes the "overhang" on the share price, allowing the company to benefit from the traction that its core businesses have gained this year and is likely to build on in the coming year.
TZ has forecast revenue growth of almost 300% for FY2014 to above $8M, a goal which has received firm backing from its revenue of $1.1 million in the September 2013 quarter, or about 17% higher than previous guidance.
In addition, TZ provided guidance that its parcel locker and data centre infrastructure businesses could be operating profitably by the end of financial year 2014.
Proactive Investors continues to value TZ Limited at between $0.16-$0.20 within the next 6-9 months.
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