Spenda Secures $3M Term Loan to Accelerate Growth
Summary
Strategic support from Capricorn provides additional non-dilutionary funding as we continue to roll out programmes to close the gap to operational break-even, he said.The facility is structured with a three-year term, featuring capitalised interest for the first 24 months. The interest rate is 12 per cent per annum, with a 2 per cent premium applied to overdue payments.The facility represents a non-dilutive funding source that supports Spendas ongoing execution strategy, providing the company with additional flexibility during a period of challenging market conditions.To secure the loan, Spenda has granted Capricorn a general charge over specific intellectual property critical to Capricorns business continuity, including CAPLink and source code related to Direct Supplier Delivery (DSD) systems. This signals the trust and alignment between the lender and Spenda, with both parties invested in maintaining the functionality and development of shared technologies.Spenda has also announced the resignation of Non-Executive Director Andrew Kearnan, who had been appointed by Capricorn. While no further detail was provided regarding his departure, the company extended its gratitude for his service and contribution to the board.This funding agreement comes at a critical time for Spenda, as it aims to scale operations without diluting shareholder equity. The capital injection enables the company to continue enhancing its software and payments offering, while working toward its goal of attaining breakeven status at the operating cashflow line.Richards acknowledged the impact of recent market conditions on investor sentiment, noting that Capricorns strategic support enables Spenda to continue rolling out its programs and work towards operational break even.As Spenda progresses, investors will be watching closely for updates on how the these new funds are being deployed and whether the company can deliver improved financial performance while accelerating customer acquisition and platform expansion.