- Candy Club Holdings (CLB) has entered into a loan for up to US$1.5 million (around A$2.49 million) with a financing lender
- It says this will allow the company to expand its capacity
- Candy Club has also entered into a US$650,000 (A$1 million) bridging loan with two of its directors, James Baillieu and Kan Tang
- CEO Keith Cohn said Candy Club is experiencing tremendous growth in its business to business segment
- On market close, Candy Club is down 2.04 per cent and is selling shares for 4.8¢ apiece
Confectionary retailer Candy Club Holdings (CLB) has entered into a loan for up to US$1.5 million (around A$2.49 million).
It says this will allow the company to expand it’s capacity further to
accommodate the increasing value of inventory required as customer demand grows.
Candy Club is a confectionary company in the U.S. Americans can shop for all types of candy, chocolates and gums and request delivery to their doorsteps.
The company continues to experience an increase in its overall business and it believes that these financial arrangements are essential to ensure Candy Club’s operations continue to thrive at these uncertain times.
In addition to the financing, Candy Club has received several term sheets from Accounts Receivable (AR) and Purchase Order (PO) lenders, which will increase the company’s borrowing base.
All of the term sheets are interest-only with no equity or warrant payments to lenders.
“Candy Club is confident and expects the agreements to conclude within the next month barring any unforeseen circumstances,” the company said.
Apart from the asset financing, Candy Club has been actively engaging with multiple parties on equity financing. The company received several equity term sheets from external investors as well as its directors James Baillieu and Kan Tang.
The company said that the terms presented by the Directors are more attractive and has entered into a US$650,000 (around A$1 million) bridging loans with them.
Funds will be used to support the company’s ongoing operations and provide additional working capital while the asset financing agreements are being concluded.
The bridging loans will carry a 12 per cent annual interest rate and can be converted into shares at a conversion price of $0.04 per share.
CEO Keith Cohn said Candy Club is experiencing tremendous growth in its business to business segment.
“As we aggressively add new retailers, increase the number of doors who carry our products and perform well on all key operating metrics, including reordering rates and advance bookings,” he said.
“It is a testament to our current momentum and supportive investors that we can secure critical financing during these uncertain times,” he added.
On market close, Candy Club is down 2.04 per cent and is selling shares for 4.8¢ apiece.