Algorae Pharmaceuticals (ASX:1AI) has secured a $3 million receivables-based working capital facility with ScotPac Business Finance, an Australian lender specialising in invoice and working capital finance.
The 24-month revolving facility allows Algorae to draw and repay funds flexibly, with interest charged only on amounts utilised, providing non-dilutive financing that complements the company’s existing cash reserves.
The facility is secured against AlgoraeRx's trade receivables and backed by a parent guarantee from Algorae Pharmaceuticals, strengthening the company's capacity to fund inventory, execute supply opportunities, and scale its revenue-generating operations across Australia and New Zealand.
Key terms of the facility include a $3 million limit, an interest rate of BBSY + 6.70%, and standard arrangement and management fees.