Range International Establishes A$575K Loan Facilities to Aid ASX Reinstatement
RAN (RAN) Share Update December 2024 Thursday 26th
Range International Secures A$575K Loan to Boost Cash Flow
Range International Limited (ASX: RAN), known for its innovative zero-waste plastic pallets, has announced the establishment of A$575,000 loan facilities to enhance its cash reserves and support efforts for ASX listing reinstatement.
Instant Summary:
- A$575,000 loan facilities established.
- Loans provided by company directors and management.
- 14% annual interest rate on drawn amounts.
- 2-year loan term with no security required.
- Funds aimed at supporting ASX reinstatement efforts.
Loan Facility Details
Range International Limited has secured loan facilities totaling A$575,000, with the agreements finalized on December 24, 2024. These loans are provided by the company's directors and management, reflecting a strong internal commitment to the company's financial health.
The loans are structured over a two-year term with an interest rate of 14% per annum on any amounts drawn. Notably, there is no security required for these loans, and they do not include conversion rights to company shares. An establishment fee of 1% will be applied upon the first drawdown.
Strategic Importance
The primary purpose of these loan facilities is to bolster Range International's cash position as part of a broader strategy to have its securities reinstated on the ASX. The company has been in discussions with the ASX regarding compliance with Chapter 12 of the Listing Rules and has provided necessary documentation for reinstatement.
Without these efforts, Range International's securities faced automatic delisting due to a two-year suspension period, which would have culminated on December 28, 2024. The company is now awaiting confirmation from the ASX on its reinstatement status.
This financial maneuver is crucial for Range International as it seeks to stabilize its operations and regain investor confidence. The loan facilities provide a necessary cash influx, which can help the company meet operational needs and strategic goals, such as ASX reinstatement. However, the high interest rate and lack of security could pose risks if the company fails to achieve its objectives.
Investor Reaction:
Analysts may view this development as a positive step toward financial stability and ASX compliance. However, the high interest rate could be a concern, indicating the company's urgent need for cash. Investor sentiment may improve if the ASX reinstatement is successful, reflecting confidence in the company's future prospects.
Conclusion:
Range International's establishment of A$575,000 in loan facilities marks a significant step in its efforts to secure ASX reinstatement and strengthen its financial standing. Investors should watch for updates on the company's reinstatement status and consider the potential risks and rewards associated with these loan terms.