Dubber secures $5m loan from Thorney Investment Group

Dubber Corporation Limited (ASX: $DUB) has secured a bridging finance in the form of a secured loan for up to $5 million from Tiga Trading Pty Ltd, a company associated with Thorney Investment Group. The loan will support the Company's interim funding requirements, with $1.5 million available immediately and the remaining balance available upon meeting certain conditions, including entering into an underwriting agreement and lodging a prospectus for a capital raising. The loan is secured by way of security over all of the assets of the Company and its wholly-owned subsidiary, Dubber Pty Ltd.

Executive Commentary on Bridging Loan

Alex Waislitz, Executive Chairman of Thorney Investment Group, stated, 'Unquestionably we were shocked by Dubber's recent announcement. Notwithstanding, Thorney continues to believe Dubber has sound prospects having built a substantial global client base that includes many Tier 1 communications service providers. Accordingly, we are supporting the company's interim funding requirements through this bridging loan facility.' Neil Wilson, Dubber Non-Executive Chair, expressed gratitude for the support from Thorney Investment Group and emphasized the company's focus on achieving business growth and efficiency objectives.

Summary of Dubber's Funding Situation

Dubber Corporation Limited has secured a $5 million bridging finance from Thorney Investment Group to meet its interim funding requirements. The company is appreciative of the support and is focused on achieving its business growth and efficiency objectives. The company's shares are currently suspended from trading on ASX as its 31 December 2023 half-year accounts are yet to be released. Dubber is in the process of considering the structure and terms of an equity capital raising to replenish its balance sheet. The company reaffirms that delivery of Dubber services to its global customer base remains unaffected. The company is also continuing its investigation into the inconsistencies in respect of funds purported to have been held in a term deposit account on its behalf by a third-party trustee, with a maximum exposure of approximately $26.6 million. Additionally, ASIC has launched an investigation into the matter. The company is evaluating avenues for possible recovery of these funds and has obtained a waiver from ASX for the grant of security over its assets without obtaining shareholder approval, due to the substantial holding of shares by Thorney Investment Group. Dubber aims to seek re-instatement of its shares to trading after finalizing and releasing its accounts.