Fluence (ASX:FLC) has agreed to convert about $1.8 million of accrued interest under its $20 million revolving credit facility into fully paid ordinary shares of the company, according to a Tuesday Australian bourse filing.

The conversion will be for AU$0.054 per share, representing the 30-day volume weighted average price up to the trading day immediately before the date of the relevant agreement, which will result in the issuance of 52.5 million fully paid ordinary shares, subject to shareholder approval.

The lenders, Nikolaus Oldendorff and Doug Brown, each serve on the company's board of directors and hold significant equity positions, the filing added.

Brown will receive 12.1 million shares, and Oldendorff will receive 40.4 million shares if approved by shareholders.

The Company will hold an extraordinary shareholder general meeting in October to seek shareholder approval.

The company's shares rose 2% in recent Tuesday trade.