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Sammy Saloum has significantly raised his voting stake in Close the Loop Limited (ASX:CLG) from 7.92% to 17.76% following the conversion of First and Second Convertible Notes on 10 July 2026. This conversion, which added over 60 million fully paid ordinary shares to his holdings, was approved by shareholders at a General Meeting on 9 July 2026. The substantial change in shareholding was officially reported through a Form 604 notice submitted to the company.
Key Highlights
- Close the Loop Limited (CLG) received a substantial shareholder change notice from Sammy Saloum.
- Saloum's voting interest surged from 7.92% (40.56 million shares) to 17.76% (105.47 million shares).
- The increase followed conversion of convertible notes approved at the 9 July 2026 shareholder meeting, adding about 60.35 million fully paid ordinary shares.
- Saloum holds his shares through ASLDH LP and is located in Southlake, Texas, USA.
Convertible Notes Conversion Spurs Major Shareholding Growth
Sammy Saloum has notably expanded his voting interest in Close the Loop Limited by converting First and Second Convertible Notes, a move authorized by shareholders on 9 July 2026. This conversion on 10 July 2026 issued approximately 60.35 million fully paid ordinary shares, substantially enlarging Saloum’s equity position in the ASX-listed company. The transaction marks a key capital restructuring event, converting previously held debt instruments into equity.
The conversion received formal shareholder approval during the General Meeting held on 9 July 2026, as detailed in the company’s Notice of Meeting dated 4 June 2026. This approval process complies with the Corporations Act requirements for significant capital structure changes, ensuring transparency and proper governance.
Voting Power Nearly Doubles Since Previous Notice
The latest update shows Saloum’s voting power in Close the Loop Limited rising from 7.92% as of 2 May 2023 to 17.76% as of 10 July 2026, an increase of approximately 9.84 percentage points over three years. His shareholding grew from 40.56 million to 105.47 million fully paid ordinary shares.
This growth occurred through several transactions, including participation in a placement tranche approved on 21 April 2023 where Saloum acquired 4.06 million shares, and exercising options for 500,000 shares on 15 December 2023 for $150,000. However, the bulk of the increase stems from the convertible notes conversion, reflecting significant previously issued debt now converted to equity.
Close the Loop’s Capital Structure and Convertible Debt Strategy
Close the Loop Limited (ACN 095 718 317) has utilized convertible notes as part of its financing approach. These notes allow investors to hold debt with embedded rights to convert into equity under specified terms. The issuance of both First and Second Convertible Notes indicates multiple rounds of convertible debt to support operations, expansion, or strategic goals.
The conversion reduces the company’s debt while expanding its equity base and share count, impacting earnings per share, dilution, and financial structure. Shareholder approval was necessary due to the conversion’s terms and conditions, in line with the company’s constitution and Corporations Act requirements.
Details on Sammy Saloum’s Shareholding and Registration
Saloum’s shares are held via ASLDH LP, the registered holder of the 105.47 million fully paid ordinary shares. Using a limited partnership structure is common for large shareholders, especially foreign investors like Saloum, who is based in Southlake, Texas, USA, offering advantages in share management and tax efficiency.
The Form 604 notice also reports a change in association with Dania Saloum, previously an associate and registered holder, who is no longer registered in her own right. This indicates a restructuring of shareholding without necessarily altering the underlying economic interest, maintaining transparency as mandated by the Corporations Act.
Timeline of Share Acquisitions and Option Exercises
Over three years, Saloum’s holdings increased through three key transactions: participation in a placement tranche on 28 April 2023 adding 4.06 million shares; exercising options on 15 December 2023 for 500,000 shares at $150,000; and the major convertible notes conversion on 10 July 2026 that significantly expanded his stake.
Regulatory Disclosure and Compliance with Corporations Act
The Form 604 notice is a mandatory disclosure under section 671B of the Corporations Act 2001, requiring notification within two business days of any material change in voting power. This ensures market transparency about significant shareholders.
The detailed filing includes the nature of changes, consideration paid, securities affected, and voting power before and after the change, helping prevent market manipulation and supporting investor decision-making. Saloum’s filing meets these regulatory obligations regarding his increased stake in Close the Loop Limited.
Substantial Shareholder Status and Market Impact
With 17.76% voting power, Sammy Saloum is a substantial shareholder in Close the Loop Limited, holding significant influence over corporate decisions. Substantial shareholders (holding 5% or more) face enhanced disclosure and regulatory scrutiny. Saloum’s increased stake positions him to impact board elections, major transactions, and strategic votes.
For investors, this concentration of ownership may affect governance dynamics and minority shareholder interests. Saloum’s influence could be pivotal in shaping the company’s strategic direction and management.
Historical Shareholding Changes and Capital Raising Efforts
Saloum’s shareholding history reflects consistent capital raising involvement, including the April 2023 placement and December 2023 option exercise. These activities highlight Close the Loop Limited’s ongoing efforts to raise funds through multiple mechanisms.
The issuance and conversion of convertible notes further illustrate a deliberate capital structure strategy, enabling the company to manage financing flexibly amid valuation uncertainties. This pattern underscores Close the Loop’s commitment to supporting its operations and growth initiatives through active capital management.
