Etherstack plc (ASX:ESK) ("Etherstack" or the "Company") advises that it has entered into a 4-year loan agreement with its long term strategic partner Icom Incorporated (“Icom”) of Japan to borrow US$2.5m to strengthen working capital in support of ongoing operations as well as directed product development collaboration between the companies.
The principal terms of the agreement are a 6.5% per annum interest rate paid quarterly on the US dollar loan amount until extinguished by Etherstack within the 4-year term. Additionally, Etherstack has issued an option that allows Icom, at their exclusive discretion, to subscribe to 6,500,000 CDIs to extinguish the loan in full within the 4-year period, which would be the equivalent of an ~A$0.57 exercise price at today's AUD/USD exchange rate.
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