- Hemp company Ecofibre (EOF) has extended its loan repayments with an unnamed trust associated with the company’s then non-executive director Barry Lambert
- The term of the loan has been extended by agreement with the lender for the amount due to be repaid on July 15, 2022 being reduced to $2 million
- The remaining balance of $8 million to be repayable on July 15, 2023
- The key terms of the loan, including an 8 per cent per annum interest rate, remain unchanged
- Shares in Ecofibre are down 1.71 per cent to 57.5 cents
Hemp company Ecofibre (EOF) has extended its loan repayments with an unnamed trust associated with the company’s then non-executive director Barry Lambert.
The term of the loan has been extended by agreement with the lender for the amount due to be repaid on July 15, 2022 being reduced to $2 million with the remaining balance of $8 million to be repayable exactly one year after.
Ecofibre and the lender also came to an agreement that at the company’s option, the amount repayable on July 15, 2023 can also be reduced to $2 million, and the remaining balance of $6 million will then become repayable on July 15, 2024.
The key terms of the loan, including an 8 per cent per annum interest rate, remain unchanged.
Ecofibre CEO Eric Wang said that “the extended term and repayment flexibility of the loan strengthens Ecofibre’s balance sheet and facilitates the company’s growth strategy”.
When the loan was announced in June 2020, Ecofibre noted that Mr Lambert was the appointor of the trust, but neither he nor his descendants were beneficiaries. EOF also noted Mr Lambert was not a director or shareholder of the trustee company.
Mr Lambert retired as Chairman of Ecofibre at the company’s annual general meeting in November 2021.
Shares in Ecofibre were down 1.71 per cent to 57.5 cents at 12:49 pm AEDT.