Sprintex has secured a hefty loan from one substantial shareholder as well as additional lenders to expand production for the G-Series blower range. Pic: Getty Images
Tech
Special Report: Sprintex has secured a loan with backer China Automotive Holdings and additional lenders to ramp up the production of its next generation of clean air compressors on the back of strong demand.
Sprintex (ASX:SIX), a clean air engineering, research and product development tech company, designs and manufactures electric clean air compressors for a range of applications from wastewater treatment to food and beverage production and aquaculture aeration.
Its G15 industrial high-speed blower range are smaller, lighter and more efficient than current industrial turbo blowers on the market with a built-in user interface and programable logic control (PLC), allowing operation of proprietary ‘Smart Pulse Aeration’.
This also reduces the overall energy consumption in most applications.
The company has successfully negotiated loan facility agreements with China Automotive Holdings, a Hong Kong-based entity (CAHL) and substantial shareholder of SIX, as well as two additional lenders for a cumulative $3.6m in funding.
The CAHL loan is repayable on 30 June 30, 2025 and bears a fixed interest rate of 6% per annum on the outstanding amount.
SIX says the conversion price will be determined as the higher of a 20% discount to the volume-weighted average price of shares on the ASX over the 15 trading days preceding conversion or A$0.03 per per share.
The convertible loan facility agreements entered into with other lenders for an aggregate of $600,000 bear a fixed interest rate of 12% per annum on the outstanding amount.
Under the loan facilities, SIX must seek approval from shareholders for the new loan to be convertible into shares at the election of the lenders.
SIX plans to use the funds to ramp up production following an increased demand from customers.
“These agreements with China Automotive Holdings and the additional lenders mark an important step forward for Sprintex as we bolster our financial position for future growth,” SIX managing director Jay Upton says.
“Growth both in terms of expected significant increase in revenues and expanding our clean energy range, as this exciting new market takes shape.”
Upton says the loan facilities provide SIX with the flexibility and resources needed to execute its strategic objectives.
“The funds will enable us to ramp up production of our G-Series high speed industrial blower range, which will ultimately facilitate bulk purchasing power for all necessary components, leading to increased margins.”
This article was developed in collaboration with Sprintex, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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