SYDNEY: ADX Energy Ltd has secured Euro 1.13 million funding for its wholly owned Austrian subsidiary ADX VIE GmbH via a program of Austrian state financing from Austria Wirtschafts Service (AWS) and Volksbank Wien AG which is ADX local commercial bank.
The funding is provided with very favourable terms including an average interest rate of 0.56%, minimal collateral of Euro 120,000 held in an ADX account with Volksbank, a loan term of 4 years and a repayment holiday until 30 June 2022. The use of funds is very flexible including all ADX VIE operating costs, capital costs and service of existing debts. The additional source of funding enables ADX to continue to build its Austrian business activities during a challenging period without parent company support.
The AWS funding program has been initiated as a result of the COVID-19 pandemic in conjunction with commercial banks to help companies with robust business models to exit the crisis in a strong position for the ongoing growth of their business.
In order to secure AWS funding it was necessary for ADX to demonstrate the ongoing viability of its business because AWS funding is not available for struggling companies or companies without a business model likely to succeed in the future.
The Board of ADX appreciates the financial support received from the Austrian state with very favourable terms that enable the Company to continue to build its unique position as only one of three production operators in Austria. The provision of funding is especially significant given the relatively short duration of business operations since acquiring the Zistersdorf and Gaiselberg fields in December 2019.