Under the terms of the deal, the loan carries an interest of 6.9% per year and can be converted into new shares at 4.05 cents per share.
Oxpay Financial plans to raise $2 million for working capital via a convertible loan from an entity called Oxley Capital Management, owned by the company's controlling shareholder Ching Chiat Kwong.
Ching now holds a direct interest of 27.85% in the company and is on the board as a non-independent, non-executive director.
