Mad Paws secures $2 million loan facility with Partners for Growth

Mad Paws Holdings Limited (ASX: $MPA) has signed a binding agreement for a new secured debt funding facility worth $2 million with Partner's for Growth VI, L.P (PFG). The facility is aimed at supporting the company's strategic growth initiatives and operational objectives.

Executive Commentary on New Loan Facility

This funding structure provides Mad Paws with capital to support our strategic initiatives and the necessary support for the launch of our brand and customer acquisition campaign, leveraging the $4.0 million in marketing contra from the Seven West Media investment commencing August 2024.

Summary of Mad Paws' New Loan Facility

Mad Paws Holdings Limited (ASX: $MPA) has successfully secured a new $2 million loan facility with Partners for Growth to support its strategic growth initiatives and operational objectives. The 36-month term and lower cost of funds compared to the existing facility are expected to enhance the company's financial position. The funds will be utilized for brand and customer acquisition efforts, general working capital, and to repay the pre-existing A$1 million growth working capital facility with Kashcade. The facility interest rate is pegged at BBSW plus 8.6975%, with a minimum rate of 12.00%. Mad Paws is required to adhere to certain financial covenants during the facility term, including maintaining minimum levels of profitability, gross margin, and liquidity. The company's CEO, Justus Hammer, expressed enthusiasm about the funding structure, highlighting its potential to support strategic initiatives and the upcoming brand and customer acquisition campaign. The new facility is expected to be drawn down by 26 July 2024, subject to the satisfaction or waiver of customary drawdown conditions. This announcement signifies a significant step for Mad Paws in securing the necessary financial resources to drive its business objectives and strategic growth initiatives.