Department 13 isn’t almost broke, they’re just landed a $10m loan
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Drone killers Department 13 are breathing a sigh of relief after it secured a $10 million line of credit to continue to fund its operations.
Department 13 (ASX:D13) makes an anti-drone system called MESMER. It signed a distribution deal in May last year with Korea Counter Terrorism Solutions, a distributor of defence and counter terrorism solutions in South Korea.
The company released its quarterly update yesterday which revealed it had just $100,000 left in the bank — compared with $2.4 million at the end of the September quarter.
And with expected cash outflows of $2.3 million in this quarter and receipts of less than half a million for the first half of 2019, it wasn’t a pretty picture.
But it announced today a lender by the name of Domazet FT3 had given it $10 million, to be split into three tranches.
The company’s shares have been in suspension since November last year, as it has struggled to secure funding for its operations and struggled with a revolving door of directors.
“The company is in the process of reconstituting the board and will appoint two new Australian directors shortly,” it told investors.
“Further, the company will be looking to replace Steve Shattil and Dr. Kathleen Kiernan who have tendered their resignation, effective no later than February 25, 2019.”