- Security technology provider Spectur (SP3) has executed final documentation for the $1.5 million loan facility with EGP Capital
- The company’s drawdowns from the loan facility must be in minimum amounts of $100,000, and multiples of $50,000
- While the facility has a 30-month term, Spectur has the flexibility to repay the full amount at an earlier date
- The loan will support short-term and medium-term capital requirements, while the company delivers revenue growth and maintains cash reserves
- Spectur last traded on May 13, at 6.8 cents per share
Security technology provider Spectur (SP3) has executed final documentation for the $1.5 million loan facility with EGP Capital.
The lender, EGP Capital, is a Sydney-based private investment business and the company’s largest shareholder. Spectur first announced securing the loan facility with EGP Capital in late April.
Spectur will use the loan facility to support its short- and medium-term capital requirements. The company needs the funds to deliver current and forecast revenue growth, whilst maintaining adequate cash reserves.
Spectur’s drawdowns from the loan facility must be in minimum amounts of $100,000, and in multiples of $50,000. The company may elect when to draw down from the facility, with 30 days’ notice.
While the facility has a 30-month term, it provides Spectur with the flexibility to repay the full amount at an earlier date. There will be a fixed interest rate of seven per cent per annum on drawn amounts.
Subject to shareholder approval at the next AGM, Spectur will issue 2.25 million unquoted options to EGP Capital. These options are for the acquisition of fully paid ordinary shares in the company, which are exercisable at 12 cents each by December 31, 2023.
If shareholder approval is not obtained, the outstanding loan principal and any outstanding fees or interest must be repaid within 45 days.
Spectur’s Managing Director, Gerard Dyson, commented on the company’s execution of the loan facility’s final documentation.
“We are pleased to finalise this facility, which removes any need for Spectur to raise equity capital for working capital purposes whilst enhancing the company’s balance sheet flexibility in the medium term,” he said.
“Investments in the last 12 to 18 months are bearing fruit as planned, as we will continue to execute our organic growth strategy from a newly strengthened platform,” he added.
Spectur last traded on May 13, at 6.8 cents per share.