ADELAIDE, AUSTRALIA: Buddy Technologies Limited has executed a binding term sheet with Partners for Growth VI, L.P. (PFG) for the provision of a loan facility of up to US$20 million to refinance debt and fund growth, a news release said.
Buddy Technologies, a leader in IoT and cloud-based solutions for making spaces smarter, will use the loan proceeds to refinance the vendor debt held by Luminous Wide Limited and Eastfield Lighting (Hong Kong) Co., Limited and to support the Company’s global growth initiatives, including its rapidly scaling manufacturing needs.
SUMMARY
- Buddy has executed a binding term sheet with San Francisco-based Partners for Growth (PFG) whereby PFG has agreed to provide the Company with a loan facility of up to US$20 million
- Funds drawn down under the loan facility will be used to refinance the vendor debt held by Luminous Wide Limited and Eastfield Lighting (Hong Kong) Co., Limited, which was entered into following the acquisition of LIFX in March 2019, and for the purpose of supporting the Company’s global growth
- Performance obligations are specified to ensure that a second manufacturer is rapidly brought online, resulting in an expected expansion of LIFX manufacturing capacity
- Further obligations are specified enforcing commercially standard trading terms, which include obtaining terms from Eastfield which will have the effect of capping the cost of manufacturing LIFX lights and given the working capital financing offered as part of this facility, the Company is anticipating an increase in manufacturing scale of up to 5x in 2021 over historical levels
- Concluding the vendor debt refinancing, which in turn releases limitations imposed on the business around the development, financing and supply of smart lights, is the last major hurdle to placing the business in a position where for the first time, it maybe able to build supply in sufficient volumes to meet the growing global contracted demand.