02 Nov ASX ANNOUNCEMENT: Pureprofile announces new financing facilities
Pureprofile Ltd (ASX: PPL or the Company) is pleased to advise that it has entered into a binding agreement for a A$10 million secured loan facility with a global funds manager (Lender) and will enter into a separate debtor financing facility under an arrangement approved by the Lender (collectively, the Facilities). The Facilities will replace the Company’s existing bank facilities; fund payment of the earn-out consideration to the vendors of Cohort and provide additional working capital to support the Company’s growth initiatives.
Material Terms of the Facilities
- Draw down of up to A$10 million;
- First ranking security over all the assets of the Company;
- Fixed interest rate of 9.5% p.a. on drawn amounts;
- 24-month term with interest-only payments to be made monthly in arrears;
- the Company will issue the following performance rights to the Lender:
- 950,000 performance rights, which will convert to fully paid-up ordinary shares upon the 60-day volume weighted average price (VWAP) of Pureprofile shares reaching $0.40 per share; and
- 1,150,000 performance rights, which will convert to fully paid-up ordinary shares upon the 60-day VWAP of Pureprofile shares reaching $0.60 per share.
Further details on the performance rights will be released in due course.
- in addition, the transaction documents are subject to warranties, indemnities, fees, default fees and terms which the Company considers usual for a transaction of this size and scope.
Debtor financing facility
Pureprofile expects also to enter into a secured debtor financing (receivables purchase) agreement under an arrangement approved by the Lender. The debtor financing facility will be used at the Company’s discretion, to accelerate cash flows and provide additional working capital to support Pureprofile’s anticipated growth.
The debtor financing facility is expected to provide additional funding in excess of $5 million, based on the current level of receivables of the participating Pureprofile subsidiaries.
Working capital positions Pureprofile for growth
The Facilities will support the Company’s estimated capital requirements, including payment of the remaining cash consideration to the vendors of Cohort. With a strengthened cash position, the Company will continue to deliver on its product investment while working to create further efficiencies within its business units.
Pureprofile Founder and CEO, Paul Chan, said: ‘We are pleased to be working with a lender that understands our business and is fully supportive of our growth initiatives and investments. The new facilities we are in the process of putting in place will set the Company up to achieve its strategic goals. The additional funding will complement the Company’s plans to generate cost efficiencies across the group, further strengthening its cash position and enabling Pureprofile to pursue organic growth opportunities.’