Hydrix signs $5 million loan facility with Pure Asset Management
MELBOURNE: Hydrix Limited has entered into a formal facility agreement with Pure Asset Management Pty Ltd, under which Pure Asset Management has agreed to provide the Company with an aggregate $5 million loan facility for the purposes of refinancing a majority of existing shareholder loans ($3 million), and to provide growth and general working capital.
Under the secured loan facility agreement, which contains customary representations, covenants and warranties in favour of the lender, the Company has access to a $4 million 4 year loan facility, available for refinancing of debt and general working capital purposes, and a $1 million 3 year loan facility, available for general growth and working capital purposes.
As part of the funding transaction, the Company will issue to Pure Asset Management warrants to acquire new shares in Hydrix.
Hydrix Chairman, Gavin Coote said: “We are delighted to have completed this finance facility with Pure Asset Management, who we view as being a strong long-term partner for the Company sharing similar strategic views around future growth. The favorable facility terms and conversion feature of the warrants priced at a premium to recent trading, represent a strong validation of our progress during the past 12 months and the outlook for FY20 and beyond.
“On 4 November2019 we announced that we had successfully raised $2.5 million via a placement as well as the launch of a Share Purchase Plan open to eligible shareholders. The funds raised from the placement and SPP, along with the $5 million debt facility with Pure Asset Management, provide working capital to support the continued revenue growth of the services business, implementation of our ‘buy, build, invest’ strategy, minimise shareholder dilution and repay the majority of existing shareholder loans. The new capital will enable us to execute several new growth opportunities while also achieving the Company’s first full year cash operating profit(1)which is anticipated for this financial year”.