ASX MARKET RELEASE
Update to LIFX Acquisition Financing Arrangements
●Buddy has entered into a term sheet with Scottish Pacific, the largest independent working capital lender in Australia and New Zealand, for the provision of a A$20 million working capital facility
●The working capital facility is proposed to be an
●Buddy has been provided with short term working capital funding until such time as full form documents are executed with Scottish Pacific, ensuring no disruption to LIFX manufacturing or supply
●LIFX completed it’s
●LIFX continues on track to achieve year on year growth within the company’s historical 70%- 100% range.
23 April 2019 – Adelaide, South Australia
Buddy Technologies Limited (BUD.ASX) (“Buddy” or the “Company”), a leader in IoT and
DEFERRED CONSIDERATION AND LINE OF CREDIT ARRANGEMENTS
As detailed in the Acquisition Announcements, Buddy, Luminous Wide Limited ("Luminous") and Eastfield Lighting (Hong Kong) Co. Limited ("Eastfield") agreed to defer payment of a portion of the cash consideration due on 29 March 2019 under the merger agreement pursuant to a varied loan agreement ("New LoC").
Following the provision of
As detailed in the Acquisition Announcements, the following repayments under the New LoC remain:
a.US$3.7 million of the New LoC will be repaid on or before 30 June 2019; and
b.the remainder (US$3.7 million) will be repaid on or before 31 December 2019.
TRANCHE B DEBT FINANCING
Shareholders are advised that the Company has executed an indicative term sheet with prominent working capital financier, Scottish Pacific for the provision of a trade finance facility. Scottish Pacific is the largest independent working capital lender in Australia/NZ, and the facility is proposed to be a rotating line of credit that will be alternately drawn upon and then paid down across a given year, with maximum funds drawn down expected to be in LIFX’s busiest period of the year - October through December.
Key terms of the trade finance facility are proposed to be as follows:
●Facility amount: up to A$20 million
●Trade receivable advance rate – initially between 50% and 75% depending on the currency of the receivable, calculated on the value of gross invoices submitted excluding invoices greater than 90 days old
●Interest rate: Prime rate plus 6.5% - expected to be between 7.23% and 9.02 depending on the currency of the receivable
●Term: 24 months
●The facility will be subject to standard notice period and fees.
The trade finance facility remains subject to the parties agreeing and executing formal documentation. The Company will provide shareholders with an update on this debt financing via a further ASX announcement.
March of this year was LIFX’s
David P. McLauchlan
Chief Executive Officer
Buddy Technologies Limited.
Buddy Platform Limited (BUD.ASX) helps customers of any size to “make every space smarter”, by way of two subsidiaries – Buddy Platform and LIFX. Within Buddy Platform, Buddy Cloud, Buddy Ohm and Parse on Buddy are the company’s core offerings that empower its customers to fully leverage digital technologies and their impact in a strategic and sustainable way. Buddy Cloud enables ubiquitous access to and storage of data from any environment – recreational vehicles, schools, commercial buildings or an entire city – in support of smarter, healthier spaces. Buddy Ohm is a resource monitoring solution that simplifies building operations and provides peace of mind by harnessing
For more than six years, LIFX has established a leading market position as a provider of smart lighting solutions. The company’s suite of
Buddy is headquartered in Adelaide, Australia, with offices in Seattle, Melbourne, Silicon Valley and Shenzhen.
For more information, visit www.buddy.com and www.lifx.com.
Buddy Platform Contact:
Brian Seitz, VP of Marketing & Communications
Phone: +1 (206)
Email: [email protected]