DGR Global's response to ASX inquiry

DGR Global (ASX:DGR) has responded to an ASX Aware Letter concerning its non-compliance with certain loan covenants under a Facility Agreement with Choice Investments (Dubbo) Pty Ltd. The company admitted to breaches in monthly reporting and minimum cash balance requirements but asserts these breaches have not materially affected the price or value of its securities. No repayment demands were made by the lender, and discussions are ongoing to address the loan due in November 2024.

Overview and future outlook for DGR Global

DGR Global's announcement highlights its response to the ASX regarding breaches of loan covenants under its Facility Agreement with Choice Investments. The company contends that the breaches, which involved monthly reporting and cash balance requirements, were not substantial enough to impact its market securities' value. The ASX inquired about the necessity of disclosure due to potential material effects. DGR Global assured its compliance with disclosure rules and is actively working to resolve loan issues before the due date in November 2024. Looking ahead, the company is in discussions to secure working capital and remains focused on maintaining compliance with its financial obligations.

Executive commentary on compliance and disclosure

The company maintains that the breaches of the Facility Agreement did not have a material effect on the price or value of its securities. Consequently, there was no requirement for immediate disclosure under Listing Rule 3.1. Discussions are ongoing to resolve the loan issues and secure necessary working capital.