- Buddy Technologies (BUD) has entered an agreement with New York-based CST Investments Fund to access $12.5 million
- The funding gives Buddy financial flexibility during COVID-19 — allowing it to continue developing its growth strategies
- The debt facility includes initial funding of up to $1 million, with 23 subsequent monthly payments of at least $500,000
- If it chooses, Buddy can eventually access an extra $11.5 million, but for now, it doesn’t intend to take up the offer
- Buddy has seen a 10 per cent dip in its share price which is now trading at 0.9 cents each
Buddy Technologies (BUD) has entered into a share purchase agreement with New York-based CST Investments Fund.
The agreement will provide Buddy with $12.5 million, which can potentially be increased to $24 million over two years.
This growth equity overdraft facility gives Buddy the financial capability to navigate the COVID-19 pandemic and still continue to deliver on its growth strategies.
“Securing this new equity overdraft facility allows us to expand the business with confidence during the pandemic and beyond, while giving us future access to significant capital at future prices should our growth over the next 24 months create need for such resources,” CEO David McLauchlan said.
The facility will provide initial funding of up to $1 million, with 23 subsequent monthly payments of at least $500,000.
Buddy has stated that, for now, it doesn’t intend to access more than the original agreed $12.5 million. If this changes, the company will report that to the market with its reasoning.
Nevertheless, Buddy is aware the additional funds will provide it with extra financial wiggle room.
“Despite some remarkable headwinds in the global economy, both now and likely into the future, we remain encouraged by the sales performance of our products at online and offline retail locations around the world,” David added.
Buddy has seen a 10 per cent dip in its share price which is now trading at 0.9 cents each at 1:13 pm AEST.