Eden Innovations Ltd (ASX:EDE) Contract Announcement

Eden Innovations Ltd (ASX:EDE) has announced that its US subsidiary has entered into a conditional contract to sell its 65.58 acres of industrial land in Augusta, Georgia for US$5 million (A$7.494 million). The sale is subject to several conditions and, if completed, is expected to significantly reduce the existing loan amount secured over Eden's US subsidiary's US real estate assets, thereby reducing servicing costs by almost 80%. Additionally, the potential sale of another property in Littleton, Colorado could further contribute to debt repayment, leaving only the loans from the Small Business Administration's Paycheck Protection Program and from Eden's major shareholder, Tasman Resources Limited, outstanding.

Executive Commentary

Eden is confident that the sale of the Augusta property will be completed in due course, reducing operating costs significantly. The potential sale of the Mead Way property could further contribute to debt reduction, leading to positive cash-flow in the first half of 2025. These developments would allow Eden US to retain its full production and operating capability at its remaining Denver property, while fully discharging the iBorrow debt and reducing annual operating costs by approximately US$864,000 (approx. A$1.3 million) per year.

Summary of Contract and Outlook

Eden Innovations Ltd (ASX:EDE) has entered into a conditional contract to sell its industrial land in Augusta, Georgia, which, if completed, is expected to reduce the existing loan amount significantly and lower servicing costs. The potential sale of another property in Littleton, Colorado could further contribute to debt repayment, leading to positive cash-flow in the first half of 2025. These developments would allow Eden US to maintain its production and operating capability, discharge the iBorrow debt, and reduce annual operating costs, positioning the company for a positive outlook.