Biome Australia Limited (ASX:BIO) Secures $5.0M Debt Facility with NAB
Funding Details
Biome Australia Limited has secured a $5.0 million debt facility with National Australia Bank (NAB), aimed at accelerating the company’s growth. The facility is non-dilutive to shareholders and replaces the existing Tradeplus24 facility with improved interest rates.
Facility Breakdown
The NAB facility comprises a $3.5 million Invoice Finance Facility with an interest rate of 7.75% and a $1.5 million Trade Refinance Facility at 7.53% interest. The Invoice Finance Facility includes an application fee of $12,250 and a monthly facility fee of $1,700, with no set expiry date. The Trade Refinance Facility carries an application fee of $5,250 and a facility fee of 1.3% per annum, set to expire on 27 February 2026 with plans for extension.
Use of Funds
Biome will use the facility to optimise inventory management and support business growth both locally and internationally. Investment in inventory aims to improve supply chain efficiencies and reduce the cost of goods sold (COGS).
Executive Comments
Biome Australia’s Chief Financial Officer, Douglas Loh, commented: “I am delighted we have formed this new partnership with NAB Health, a division of one of Australia’s leading business banks. NAB’s specialty healthcare department has a deep understanding of the Australian health industry, and their backing is a significant validation of the Biome Australia business. As we continue to expand Biome internationally, we look forward to working closely with the NAB Health team to support our growth capital needs.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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