Admedus (ASX:AHZ) has entered into an agreement with Partners for Growth (PFG) for a secured debt facility of up to A$10 million to support continued expansion.
The facility consists of a $5 million revolving line of credit (RLOC) at an interest rate of 9.75% and a $5 million term loan at an interest rate of $11.75%.
Both the RLOC and term loan are repayable in 36 months and the company will fully draw the term loan facility.
Wayne Paterson, CEO, commented
“The outlook for Admedus has never been more confident than it is today; we are on track to ambitiously expand our business.
“PFG have a strong track record supporting high-growth Australian companies such as ours and we look forward to working with them as we take Admedus to the next level globally.
“Today’s agreement is consistent with our longstanding commitment to avoid raising capital in a way that would unduly dilute the position of our very patient and enormously supportive shareholders.”
Partners for Growth (PFG)
Based in the San Francisco Bay area, PFG is a partnership that provides capital funding debt solutions to private and public technology and life science companies.
PFG has been granted a first-ranking security for the loans on all of Admedus’s assets and most wholly-owned group companies.
Admedus gives certain covenants and warranties typical for a facility of this nature, including maintenance of certain financial ratios.
In conjunction with receiving the loan facility from PFG, Admedus has agreed to issue PFG a 7-year warrant for the issue of 4.9 million shares exercisable at $0.25.