- Healthy food company Oliver’s Real Food (OLI) has entered a binding term sheet to secure a $5 million loan
- The covenant’s terms include a 10.5 per cent interest rate per annum and the repayment of a current Commonwealth Bank loan, worth $950,000
- Chairman Jason Gunn says the new facility will give the company the balance sheet it has been lacking since he returned to the business in March 2019
- The loan will also be used to withstand the financial impact of COVID-19 over the next 12 to 24 months
- On market close, Oliver’s Real Food is down 2.27 per cent and is trading for 4.3 cents per share
Healthy food company Oliver’s Real Food (OLI) has entered a binding term sheet to secure a $5 million loan.
The covenant’s terms include a 10.5 per cent interest rate per annum and the repayment of a current Commonwealth Bank loan, worth $950,000.
The facility also provides for the lender to convert the loan and interest by the issue of warrants at 12 cents each, which is subject to shareholder approval.
Chairman Jason Gunn says the new facility will give the company the balance sheet it has been lacking since he returned to the business in March 2019.
“In addition, it will fully enable the company to provide the operations team with everything they need to deliver on the opportunity provided to the company,” he said.
“With the team we have in place led by Tammie Phillips, our new CEO, and the clear runway to growth we have secured through our supply agreement with EG, this funding facility completes the process of creating a secure future for the business,” he added.
The loan will also be used to withstand the financial impact of COVID-19 over the next 12 to 24 months.
On market close, Oliver’s Real Food is down 2.27 per cent and is trading for 4.3 cents per share.