The RMB50 mil loan, known as loan 3, will be utilised on Nanofilm Renewable Energy Technology (Shanghai) and Nanofilm Vacuum Coating (Shanghai).

Nanofilm Technologies International has obtained an additional three year term loan of RMB50 million ($9.21 million) from the Industrial Commercial Bank of China to fund working capital purposes of its wholly-owned subsidiary. 

The RMB50 million, known as loan 3, will be utilised on Nanofilm Renewable Energy Technology (Shanghai) and Nanofilm Vacuum Coating (Shanghai), known as NRE and NVC. 

The loan is secured by a mortgage over Shanghai plant 1 and Shanghai plant 2, owned by NRE and a corporate guarantee from the company. Each of loan 2 and 3 are additionally secured by a pledge over two utility patents owned by NVC.

In the event of a default which is deemed to have occurred if the executive chairman Shi Xu ceases to be a de facto controller of NVC, or if there is any change of control between the borrower and any of its related parties. 

The group says that the mentioned loan facilities are not expected to have any material impact on its consolidated earnings and net tangible assets per share for the financial year ended Dec 31, 2025. 

Shares in Nanofilm Technologies closed flat at 65.5 cents on March 25.