XTEK Limited (ASX:XTE) has secured a A$2.5 million loan facility from the Commonwealth Bank of Australia (ASX:CBA), which will be used to enhance the XTclave™ ballistic helmet manufacturing line at its state-of-the-art facility in Adelaide.
This will place XTEK in a stronger position to deliver on large commercial orders for XTclave™ ballistic helmets.
The company said good progress had been made with international customers and the first commercial order for XTclave™ ballistic helmets was on track for mid-2020.
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Optimises capital structure
Existing preform equipment is already fully operational and additional equipment in the helmet production line is expected to be operational in the second quarter of its financial year 2021.
XTEK managing director Philippe Odouard said: “This CBA loan facility represents non-dilutive funding and is a step in optimising XTEK’s capital structure.
"The funds will be used to design, build and install new state-of-the-art equipment into the ballistic helmet manufacturing line in the Adelaide manufacturing facility.
“This upgrade enhances our helmet manufacturing capabilities and ensures XTEK is well-positioned to deliver on large quantities of our rifle ballistic helmets into the world’s biggest markets.
"The helmet uniquely protects against AK47 rounds using an ultra-light polyethylene (PE) material.”
Odouard said significant progress had been made with international customers recently and the company was working towards finalising the first helmet order in the near term.
"We look forward to accelerating our commercialisation strategy and further showcasing our advanced manufacturing capability,” he said.
The three-year term loan facility has a competitive variable interest rate, with interest-only payments for the first 12 months.
It is secured by a registered charge over the assets of XTEK.
XTEK provides high-quality products to deliver tailored solutions to the government, law enforcement, military, space and commercial sectors.