EarthRenew Secures Debt Facility To Fund Future Growth
EarthRenew Inc (CSE: ERTH) has secured additional funding to support growth. The firm last night announced that it has secured a total of $3.2 million in new debt facilities that will be used for planned expansions of its operations.
The funding was provided by Agriculture Financial Services Corporation, with funding provided directly to the firms new subsidiary known as Replenish. The debt, provided on a senior secured basis, is to be used to replace currently outstanding senior debt while also enabling inventory growth and capital expenditures for the firms production facilities.
The debt contains a five year term, with interest only payments until 2022. The debt consists of two facilities, with the main facility containing an interest rate of 3.52%, while the inventory loan bears interest at a rate of 2.875%.
A total of $2.6 million has been drawn under the facilities to date, of which $1.6 million was reportedly used to pay down existing debt.
EarthRenew last traded at $0.25 on the CSE.
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