Ecofibre Limited's strategic financial move

Ecofibre (ASX:EOF) has successfully completed a sale and leaseback arrangement for its properties in the US. This strategic decision is part of the company's plan to reduce debt and enhance financial sustainability. The properties, located in Greensboro and Georgetown, were sold for USD 9.7 million.

Ecofibre's strategic debt reduction and future outlook

Ecofibre's recent sale and leaseback deal involves properties in Greensboro, North Carolina, and Georgetown, Kentucky. Selling for USD 9.7 million, the company aims to repay USD 9.0 million of secured debts and convert USD 1.0 million into an unsecured loan due by 2027. The leaseback terms include a 10-year triple-net lease with rent escalations. This move is aligned with Ecofibre's broader strategy to strengthen its financial position, focusing on sustainable materials and health solutions. The company is also negotiating working capital loans to support its operations. Through these efforts, Ecofibre seeks to enhance its market presence in advanced technologies and sustainable health solutions.

Executive insights on Ecofibre's financial strategy

This transaction is a key part of our strategy to streamline operations and achieve sustainable financial performance. By reducing our debt, we are positioning Ecofibre for future growth in our advanced technology and health solutions sectors.