xReality Group (ASX:XRG) agreed with Causeway Asset Management to implement a new senior debt facility of up to AU$6 million and repay an existing debt facility with it in place from March 2021, according to a Tuesday Australian bourse filing.
The new facility provides for an initial drawdown of AU$5 million to repay the existing facility amount of AU$4.6 million in full, as well as a second tranche of AU$1 million, which can be drawn down, should it be required, once the xReality achieves a total annual recurring revenue of AU$7 million.
It also provides for additional working capital for the growth of Operator XR.
The maturity date for both tranches under the new facility is April 1, 2027.
The firm will also issue 5 million xReality warrants to Causeway Asset Management.
xReality Group's shares rose past 6% in recent trading on Tuesday.
Price (AUD): $0.04, Change: $+0.0020, Percent Change: +6.06%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.