Murray Cod Australia (ASX:MCA) has secured $43m in finance from Westpac and finalised the purchase of a property adjoining its Bilbul site near Griffith, New South Wales.
The funding package includes a $30m term loan, a $10m overdraft facility, and a $3m equipment finance facility. According to MCA, the funds will be used to refinance an existing $20m facility with iPartners, support the purchase of the new property, complete capital works at Stanbridge, and boost working capital to grow fish stocks for future harvests.
The term loan has a three-year maturity, with the company’s land and water interests, as well as current and future assets, serving as security. MCA expects the facilities to be established by the end of December.
Chief Executive Officer Ross Anderson described the arrangement as “a great funding solution for our company,” highlighting the due diligence process conducted by Westpac and the interest savings it would generate. “The lower interest rates furnished by Westpac should provide interest savings of more than $1m per annum on the existing debt,” Anderson said. He added that the new facilities, along with MCA’s $20.4m equity raise in June, provide the company with “strong financial capabilities to execute on our strategy.”
In a related move, MCA has agreed to purchase a 10.15-hectare irrigated property adjacent to its Bilbul site for $1m. The property includes a residence and shedding and will offer space for the expansion of MCA’s facilities at the site.
Murray Cod Australia is a vertically integrated aquaculture company that grows Aquna Sustainable Murray cod, a premium fish farmed in the Riverina, NSW. The company employs proprietary technology to farm the fish in its natural habitat.
Shares closed 7.41% higher at $0.14 yesterday.