Global Masters Fund Reports Stable Convertible Note Conversion Price at $3.10 and Maintains 13.95% LTV Ratio as of June 2026

Overview of Convertible Note Structure and Conversion Price Stability

Global Masters Fund Limited manages a convertible note program offering redeemable unsecured convertible notes listed on the ASX under ticker GFLGA. The latest update confirms the conversion price for these notes into ordinary shares of the parent company (ASX:GFL) remains fixed at $3.10 per share. This price consistency is important for noteholders holding conversion rights, indicating no amendments to the note terms during the reporting period.

These convertible notes are unsecured and governed by the GFL Convertible Note Trust (2021), with Equity Trustees Limited serving as trustee. The fund is obligated to submit quarterly reports to both the trustee and ASIC detailing compliance with the notes' terms and trust deed. Maintaining the fixed conversion price throughout the quarter suggests no events triggered adjustments to conversion terms, providing a positive outlook for noteholders considering conversion.

Conservative Loan-to-Value Ratio Demonstrates Prudent Leverage

As of 30 June 2026, Global Masters Fund reported an LTV ratio of 13.95%, calculated per the standardised formula disclosed in the quarterly report. The ratio is derived by subtracting cash and cash equivalents from total debt, then dividing by the market value of all marketable securities held. This metric reflects the fund’s leverage relative to its investment portfolio, showing the extent to which securities are encumbered by debt.

The fund’s financial position at 30 June 2026 included total debt of $8,260,003, offset by cash and equivalents of $127,876, resulting in net debt near $8.13 million. The marketable securities portfolio was valued at $58,279,744. The resulting 13.95% LTV indicates a conservative leverage stance, with debt representing a small fraction of total assets. This sizeable equity buffer is relevant for noteholders evaluating security and for shareholders assessing capital structure efficiency.

Full Regulatory Compliance Affirmed for the Quarter

Global Masters Fund confirmed in its quarterly filing that it fully complied with the convertible notes’ terms, the trust deed, and Chapter 2L of the Corporations Act 2001 during the quarter ended 30 June 2026. The fund also met obligations under Chapter 2M concerning financial reporting and audits, as well as Chapter 6CA covering continuous disclosure. These confirmations, certified by the company secretary and directors, provide formal assurance to noteholders and the market regarding regulatory adherence.

The report states no events occurred that would trigger immediate repayment demands, enforcement actions, or other remedies under the notes or trust deed. Additionally, no circumstances arose that materially disadvantaged the issuer or any security interests created by the notes. This full compliance and absence of triggering events reinforce the stability of noteholder positions and fund operations.

Stable Business Operations with No Significant Changes

The quarterly report confirms no substantial changes in the nature of Global Masters Fund Limited’s business or its subsidiaries during the quarter ended 30 June 2026. This stability indicates continuity in operations without major strategic or structural shifts that could impact debt servicing or regulatory compliance. Such consistency supports confidence among noteholders and shareholders alike.

Moreover, the fund reported no changes regarding guarantors during the quarter—no new guarantors were appointed, none ceased liability, and no name changes occurred. This stability preserves the original security framework of the convertible notes, protecting noteholders reliant on these guarantees.

Financial Position and Debt Repayment Capacity Confirmed

Directors and the company secretary of Global Masters Fund certified that the fund’s financial position and performance ensure sufficient property to repay each note upon maturity, as required under section 283BF of the Corporations Act. This director-level certification attests to the fund’s ability to meet debt obligations.

With $58.28 million in marketable securities significantly exceeding net debt, the fund maintains a strong asset buffer. The conservative 13.95% LTV ratio indicates ample financial flexibility without increased leverage during the quarter. Investors will monitor whether the fund sustains this prudent capital structure, as changes could affect leverage and financial stability.

No Material Adverse Events or Security Impairments Reported

The quarterly filing confirms no known matters that could materially prejudice security interests or noteholder rights, fulfilling section 283BF(4)(g) of the Corporations Act. This broad assurance reflects thorough management assessment of risks to noteholder security.

Additionally, no related-party transactions requiring disclosure under sections 283BF(5), (6), and (7) occurred during the quarter. This absence of related-party dealings indicates operations are conducted at arm’s length, minimizing conflicts of interest or undisclosed risks for noteholders.

Trustee Reporting and Disclosure Obligations Maintained

Global Masters Fund’s quarterly reporting obligations stem from its status as an issuer of listed convertible notes under the Corporations Act disclosure framework. The company confirmed providing Equity Trustees Limited with all material notifications to ASIC and investors during the quarter, including officer changes and charges. This ensures the trustee has up-to-date information to monitor compliance on behalf of noteholders.

The combined quarterly and continuous disclosure regime offers noteholders and shareholders comprehensive insight into the issuer’s financial and regulatory status. These certified reports represent formal disclosures essential for informed investment decisions.

Anti-Money Laundering Compliance and Governance Practices

The report states that Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) obligations are not applicable to the fund’s operations. This reflects the fund’s business model focused on managing listed convertible notes and holding marketable securities, which does not trigger AML/CTF requirements.

The broader governance framework includes trust deed compliance, Corporations Act adherence, ASIC continuous disclosure, and trustee oversight. The absence of breaches or non-compliance during the quarter evidences effective internal controls and governance standards.

Noteholder Security Supported by Strong Asset Coverage

The disclosed 13.95% LTV ratio serves as a key security indicator for convertible noteholders, showing that approximately $7.00 of marketable securities back every $1.00 of net debt. This substantial asset coverage exceeds typical minimums, positioning noteholders well assuming stable securities valuations.

The report does not specify any volatility or valuation adjustments in the securities portfolio during the quarter. Investors should note that the LTV ratio is based on current market values and may fluctuate with securities prices. Significant declines in portfolio value could increase the LTV ratio, impacting financial flexibility and note security.