- Smart tech company Buddy Technologies (BUD) has entered a vendor debt agreement with Luminous Wide
- Luminous has agreed to release and forgive US$10 million (around A$14.2 million) of the debt amount that is outstanding for the LIFX purchase in 2019
- Additionally, Luminous has agreed to scrap 50 million of the 100 million options issued to it
- Both the debt forgiveness and cancellation are to occur at the same time and are subject to an agreed settlement amount
- Buddy is currently in discussions with a third-party financier who will refinance the settlement amount into a multi-year loan facility
- Not long after this announcement, the company entered a trading halt regarding the refinancing update
- Buddy shares last traded at 6.4 cents on October 20
Smart tech company Buddy Technologies (BUD) has entered a vendor debt agreement with Luminous Wide.
Under the agreement, Luminous has agreed to release and forgive US$10 million (around A$14.2 million) of the debt amount that is outstanding for the LIFX purchase in 2019, or almost 42 per cent of the outstanding amount.
Luminous has also agreed to cancel the 50 million of the 100 million options issued to it as part of the original deal.
Both the debt forgiveness and cancellation are to occur at the same time and are subject to an agreed settlement amount, which will be part of Buddy’s refinancing with a third party.
Buddy is currently in discussions with a third-party financier who will refinance the settlement amount into a multi-year loan facility.
Not long after the debt announcement, the company entered a trading halt regarding this refinancing update.
In the meantime, earlier this week, Buddy recorded its first positive earnings quarter.
The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $32,000, compared to a $2.9 million loss in the prior corresponding period (pcp).
Consolidated revenues were also higher at $9.5 million, compared to $7.9 million in the pcp.
Before today’s trading halt, Buddy’s shares last traded at 6.4 cents on October 20.