Scalare Partners Holdings Limited has advised that the remaining tranches of its $5.0 million convertible note funding from Blackstone Mercantile Group Ltd will now be received later than originally planned, with the second instalment pushed from late September to 30 October and the final tranche delayed from late October to 30 November 2026. To date the company has received $2,071,941 of the committed amount, leaving $2,928,059 still to be drawn across the revised schedule.
The timing shift introduces a notable complication for Scalare’s capital structure and governance. The original shareholder approval for issuing the convertible notes under ASX Listing Rule 7.1 is valid only until 4 November 2026, but the final instalment will now arrive after that date. This means the company must seek fresh shareholder approval at its Annual General Meeting on 26 November 2026 to complete the funding facility. The final tranche of $1,428,059 is now conditional on that approval being obtained, introducing material execution risk into what was previously a locked-in funding agreement. If shareholders do not approve, the company has flagged it would need to evaluate alternative funding options, a scenario that could materially affect capital planning.
There is a potential upside that investors should track. Blackstone has indicated it may invest an additional $1.0 million beyond the committed $5.0 million, which if realised would bring the total possible investment to $6.0 million. Any extra capital would be issued on identical terms to the existing notes, including a conversion price of $1.00, and would follow the same shareholder approval process as the main facility. The company also confirmed that Fairfax Partners Inc will continue receiving $500,000 from each instalment as previously announced in August, an arrangement that remains unchanged and continues to be paid from drawdowns as they occur.
Scalare has stated it expects the revised timing to have no material operational impact, suggesting management is confident the company can sustain operations through the extended funding timeline. Investors should monitor several items at the November AGM, particularly any Board commentary on the company’s cash position and near-term funding needs, as well as the shareholder vote itself. The outcome will determine whether Scalare receives the final $1,428,059 minimum tranche and whether Blackstone proceeds with any additional capital commitment. This announcement is classified as price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Scalare Partners Holdings Limited (ASX: SCP)
Scalare Partners Holdings Limited is an Australian venture capital and investment firm specializing in early-stage technology startups. The company provides capital, mentorship, and ecosystem services to founders through direct investment and strategic acquisitions of complementary businesses including Tank Stream Labs, Tech Ready Women, and the Australian Technologies Competition. It operates across Australia, the United States, and other markets, enabling retail investors to gain exposure to early-stage startup investments.
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