GSTechnologies (LSE:GST) has entered into a US$10 million unsecured term loan facility with Clarivan Group Kommanditbolag, a Sweden-incorporated lender, to bolster working capital and fund potential strategic acquisitions.
The facility is structured in two equal tranches of US$5 million, the first available during July and the second during August, and carries interest at 5% per annum payable monthly in arrears.
The loan matures on 31 July 2030 and is repayable in full at that date unless prepaid or converted earlier, with any early redemption attracting a fee of 1% of the outstanding principal.
"The facility provides GST with access to significant additional capital on attractive terms, enhancing our financial flexibility as we continue to execute our growth strategy," said Tone Goh, Executive Chairman.
The agreement restricts the company from incurring additional indebtedness without consent, a standard covenant for facilities of this type.
GSTechnologies did not disclose whether acquisition targets have been identified or provide an updated cash position alongside the announcement.
