EBR Systems Finalizes Conversion of 11,325 Options into 113,250 CDI Securities on ASX

Overview of EBR Systems’ Capital Structure and CDI Securities

EBR Systems Inc., trading on the ASX under ticker EBR, operates via CDI (CHESS Depositary Interest) securities structured at a 10:1 ratio. Registered with ARBN 654147127, the company uses the CDI framework to enable trading on the Australian Securities Exchange. CDI securities allow international companies to be traded on Australian markets by enabling shareholders to hold interests in underlying shares through depositary arrangements.

EBR Systems’ CDI securities include restrictions on US persons, excluding Qualified Institutional Buyers (QIBs), a common regulatory and commercial measure in cross-listed securities. The 10:1 ratio means each CDI represents one-tenth of an underlying share, facilitating accessible trading denominations and pricing for Australian investors.

Details on Option Exercise and Conversion Process

The company executed the exercise of 11,325 options under security code EBRAI, labeled "Option Expiring Various Dates Ex Various Prices." This exercise led to the issuance of 113,250 CDI securities, consistent with the 10:1 conversion ratio standard to EBR Systems. The initial option exercise date coincides with the issue date of 1 July 2026, with the last exercise recorded on 28 May 2026, marking the period during which option holders converted their holdings.

Each CDI was issued at a conversion price of USD 0.16 per security. The announcement confirms that the newly issued securities rank equally in all respects from the issue date with existing CDI securities quoted on the ASX, ensuring identical voting rights, dividend entitlements, and economic benefits.

Growth of EBR Systems’ Quoted Capital Post-Conversion

Following the quotation of the 113,250 CDI securities, EBR Systems’ total quoted capital on the ASX will reach 753,305,590 CDI securities. While the addition is significant, it represents a modest percentage increase relative to the existing capital base. The quotation application was lodged on 27 July 2026, subsequent to the securities issuance on 1 July 2026, reflecting the formal listing process following economic settlement.

Expanding quoted capital through option conversions is a routine method for companies managing incentives for employees, contractors, and investors. The fact that these securities were intended for ASX quotation rather than remaining unquoted indicates their role in providing liquid, tradeable holdings. This conversion completes a cycle, integrating new securities into the existing quoted CDI pool.

Unquoted Securities and Future Capital Developments

EBR Systems continues to hold unquoted securities including 1,944,214 warrants (EBRAH) and 5,944,485 options (EBRAI). These unquoted instruments represent potential future dilution through conversion or exercise, with varying prices and expiry dates.

Maintaining unquoted warrants and options is typical for companies employing incentive schemes or capital strategies involving convertible instruments. These securities remain unquoted until exercised or converted into quoted CDI securities. Investors should monitor future announcements on these instruments, as their conversion will further increase the company's quoted capital and may impact ownership and earnings per security.

USD Pricing and Currency Considerations

The option-to-CDI conversion was priced in US dollars at USD 0.16 per security. This USD denomination reflects EBR Systems’ likely US origin or dual-listing status and aligns with US equity market conventions. The USD 0.16 price represents the strike price at which options were exercised.

Australian investors should consider currency exchange impacts, as fluctuations between the Australian dollar and US dollar may affect the value of USD-denominated securities. The announcement does not specify AUD equivalents or exchange rates used during conversion, so investors should consult contemporaneous rates for AUD-based analysis.

Compliance with ASX Listing Rules and Regulatory Requirements

EBR Systems’ quotation application for the 113,250 CDI securities complies with Appendix 2A of the ASX Listing Rules, which governs securities issued from option exercises or convertible security conversions. The company confirmed adherence to Appendix 2A provisions, ensuring regulatory compliance for capital management and disclosure.

The Appendix 2A filing is the standard method for notifying the ASX of new securities becoming quoted following convertible instrument exercises. It requires detailed disclosure of security numbers, issue dates, pricing, and parity confirmation with existing securities, providing transparency to market participants.

Investor Impact and Shareholder Considerations

This option conversion represents the completion of a previously announced incentive or financing arrangement and does not involve a new capital raise or cash inflow. The securities were issued on 1 July 2026, with the quotation application following, indicating an administrative listing process.

Existing shareholders should note the increase in total quoted securities, which may dilute ownership percentages if they did not participate in the option exercise. The announcement clarifies that no key management personnel or associates exercised options in this round, indicating no insider concentration. Investors should factor the 113,250 new securities into ownership and per-security financial evaluations.

Next Steps and Investor Monitoring Recommendations

The next step for EBR Systems is ASX approval for the quotation of the 113,250 CDI securities, after which they will be tradable on the exchange. The securities will rank equally with existing CDI securities, subject only to the standard US person restrictions applicable to the entire EBR CDI class.

Investors should keep track of announcements concerning the exercise or conversion of the remaining 5,944,485 unquoted options and 1,944,214 unquoted warrants. Future conversions will similarly increase quoted capital and be disclosed via Appendix 2A filings. Quarterly and annual reports will provide updates on issued capital, and any new issuances or capital raises should be reviewed alongside current capital structure details.