- Ensurance has received a $2.5 million loan from its largest shareholder
- The funds will be used to finance the company’s expansion in the UK
- The specialised insurance company currently has branches in Australia and the UK
- Ensurance shares were unchanged today, continuing to trade at 2 cents per share following a 30 per cent drop in May
Specialised insurance company, Ensurance, has received $2.5 million to fund the company’s expansion.
Ensurance’s Executive Chairman, Tony Leibowitz, has loaned the money which is to be paid back at an interest rate of 16 per cent over two years.
“The loan will support the business in executing expansion plans, especially in the UK,” Tony said.
He added: “I continue to believe in the huge potential of the business and remain committed to its long-term success and the creation of value for our shareholders.”
It is believed the loan, in addition to the company’s current cash reserves, provides runway for another year. This is in accordance the its current plans.
Ensurance provides insurance services for construction and engineering sectors across Australia and the United Kingdom.
In the UK branch, where funding will be targeted, the company are looking to expand on the types of insurance policies it offers. This will be to cover all risks for contractors, home building, engineering inspections and cyber insurance.
The Australian branch offers services including, home and contents insurance, trades liability and owner builder insurance.
The loan comes as the company reported negative operating cash flows earlier in the year. Ensurance shares were unchanged today, continuing to trade at 2 cents per share following a 30 per cent drop in May