LBT announces finalisation of SA loan facility

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Australian medical technology company LBT Innovations (ASX: LBT) has announced the execution of the $4 million facility provided by the South Australian Government.

The company announced the $4 million facility on 19 February 2018.  The documentation, comprising a Loan Facility Agreement and a Security Deed, have now been fully executed and the conditions to enable the first drawdown have been met.

The facility provides LBT with the ability to drawdown the loan in instalments of $1 million, $1.5 million and $1.5 million, subject to achievement of operational milestones. 

All drawdowns are available through to December 2019. They will then be repaid over five years from the first drawdown date. The interest rate for the Facility is a 2 per cent margin above the South Australian Government cost of funds.  The company has provided the South Australian Government with a first ranking general security.

The facility is being provided to enable LBT to recruit additional Adelaide based staff in the areas of artificial intelligence, science, and software engineering over the next two years. 

The company raised $7.9 million through a private Placement and a Share Purchase Plan earlier this year and says those funds together with the facility are projected to provide sufficient funding through to early 2020. 

According to CEO and managing director, Brent Barnes, “We are extremely appreciative of the support and collaboration with the South Australian Government. Expanding our highly specialised internal capability within the state, establishes local bench-strength to develop and bring new products to market. 

"Technological innovation and addressing a global customer need within healthcare is the backbone of this company. We are excited by the opportunity to bring forward plans to recruit specialised staff that has been facilitated by this South Australian Government loan facility. Already we have employed 8 new highly skilled staff in the areas of AI, Science and Software Engineering so far in 2018."