Ecofibre Limited (ASX:EOF) Secures New Loan Facilities
Loan Facilities Overview
Ecofibre Limited (ASX:EOF) has secured new loan facilities to support its operational strategy and financial performance. This initiative follows the completion of the sale and leaseback of three properties, which were announced on 18 December 2024.
Details of Loan Agreements
The Company has signed agreements with two lenders. The first is with Loeb Term Solutions LLC, providing a USD3 million equipment loan for Ecofibre Advanced Technologies Inc. (EAT) and Ananda Hemp Inc. (AH). This loan is collateralized by machinery and equipment and has a three-year term at an interest rate of prime plus 7%, requiring interest and principal payments.
The second agreement is with nFusion Capital Finance LLC, establishing a working capital facility with an initial funding of approximately USD0.5 million expected in January 2025. The maximum potential credit line is USD5 million, secured primarily by accounts receivable and inventory at EAT. This facility also has a three-year term, with an interest rate of prime plus 4%, starting at a minimum of 7.25%.
Intercreditor Agreement
Both lenders have executed an Intercreditor Agreement, inclusive of cross-collateral and cross-default provisions, enhancing the structure and security of the agreements.
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