MyEco Group (ASX:MCO) has secured commitments from sophisticated investors to raise AU$1.6 million through a convertible note issuance, according to a Tuesday filing with the Australian bourse.

The proceeds will support growth initiatives and one-off restructure costs aimed at cutting annual fixed expenses in the range of AU$2.5 million to AU$3 million, the filing said.

The notes carry a face value of AU$1 each, accrue interest at 10.5% per annum paid quarterly, and are convertible at a 15% discount to the 14-day volume-weighted average price, subject to a maximum conversion price of AU$0.05 and a minimum of AU$0.019 per share, the filing added.

Shares of the company fell 6% in recent Wednesday trade.