Ecofibre Limited (ASX: EOF) has announced the extension of its Australian unsecured loans, marking the next step in its ongoing balance sheet restructuring efforts. The move follows the completion of a sale and leaseback transaction for three properties and the securing of new working capital loans in late 2024.
The company has reached agreements with its two unsecured Australian lenders, James & Cordelia Thiele Trust Fund and Lambert Superannuation Fund, to extend the terms of their loans.
Ecofibre is a diversified business with operations in both the United States and Australia. It owns a portfolio of advanced manufacturing and technology businesses, focusing on sustainable polymers, natural health care, and hemp seed genetics. The company also holds a majority stake in a life sciences venture developing treatments for malignant and non-malignant gynaecological conditions.
The loan extensions provide Ecofibre with greater financial flexibility as it works toward long-term financial sustainability.
Loan Extensions
- James & Cordelia Thiele Trust Fund: The original $7.0 million loan had $1.0 million due on 1 January 2025 and the remaining balance payable by 15 July 2025. In January 2025, Ecofibre repaid $0.5 million. The revised loan terms are:
- New facility amount: $6.5 million
- Interest rate: 14 percent, with an increase if the Reserve Bank of Australia’s cash rate exceeds 5 percent
- Repayment schedule: $650,000 due on 1 January 2026, $750,000 due on 1 January 2027, and the remaining balance due on 1 January 2028
- Lambert Superannuation Fund: Previously set for full repayment on 15 July 2025, the loan terms have been extended as follows:
- New facility amount: $3.5 million
- Interest rate: 10 percent
- Repayment schedule: $10,000 per month from April to June 2025, increasing to $30,000 per month until the loan is fully repaid
