Autozi Internet Technology (AZI) said Friday that it has agreed to issue an additional senior unsecured convertible note and warrants to purchase additional notes to an institutional investor.

The deal closed on Monday and will result in gross proceeds of $27.5 million, which will be used to increase Autozi's financial flexibility, the company said.

Autozi said that it will issue an additional note of $500,000 on the effective date of the registration statement, and that the warrants can be exercised for additional notes worth up to $24 million every 90 days after closing.

The notes are convertible into ordinary shares at a conversion price determined by the closing sale price of the ordinary shares on the day of conversion, the company said.

Shares of Autozi were up nearly 2% in recent premarket activity on Friday.

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