Funding Injection Strengthens Spenda’s Push Towards Operational Break-Even
Spenda Limited (ASX:SPX) has executed a $3 million term loan facility with Capricorn Society Limited. The facility bolsters Spenda’s financial position and signals confidence in its strategic direction, The facility’s flexible funding arrangement is designed to support the company’s capital expenditure and working capital requirements as it advances its embedded payments and supply chain solutions.
Industry Tailwinds: Payments and Software Integration in Focus
Spenda operates in a high-growth sector, offering a combined software and payments platform that targets inefficiencies across business-to-business supply chains. As businesses increasingly seek to automate workflows, digitise invoicing, and manage working capital more effectively, Spenda’s end-to-end integrated platform is well-positioned to capture growing demand.
Flexible Drawdowns Support Strategic Rollout
The $3 million facility offers notable flexibility, with drawdowns available in $500,000 increments at Spenda’s discretion. This structure allows the company to align capital deployment with the rollout of its programmes, without immediately taking on the full debt burden.
Chairman Peter Richards acknowledged the importance of this structure in supporting operational progress during volatile times. “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.
Terms Reflect Long-Term Commitment
The facility is structured with a three-year term, featuring capitalised interest for the first 24 months. From the start of year three, Spenda will make equal quarterly repayments of principal and interest. 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 Spenda’s ongoing execution strategy, providing the company with additional flexibility during a period of challenging market conditions.
Secured Against Strategic IP
To secure the loan, Spenda has granted Capricorn a general charge over specific intellectual property critical to Capricorn’s 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.
Board Changes Reflect Ongoing Evolution
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.
Looking Ahead: Leaner, Stronger, More Focused
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 Capricorn’s 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.
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