FirstWave Cloud Technology (ASX:FCT) has finalised a $2.5 million loan facility with global credit investor Partners for Growth VII, strengthening its capital position following a recent $2.9 million equity raise.
The facility, drawn down on Dec. 16, features six months of interest-only payments followed by 30 equal monthly principal and interest repayments at a fixed 12.5% annual interest rate.
It includes a one-time commitment fee of $75,000 and is secured by a senior lien over all company assets.
As part of the arrangement, PFG has been granted a five-year call option to subscribe for up to $750,000 in ordinary shares, with a potential cashless exercise, while a put option requiring shareholder approval allows PFG to sell the warrant back to the company under specific conditions.
FirstWave said the facility provides greater flexibility and fewer warrants compared to its previous credit arrangement with Fenja Capital Partners.
In parallel, FirstWave has completed the final payout to Fenja Capital Partners, settling $2.4 million in outstanding principal and interest and issuing 120 million fully paid ordinary shares at $0.007 per share under ASX Listing Rule 7.1.
The company said it aims to leverage the new facility and its AI-powered compliance management initiatives to expand monetisation of its free open-source software, now used by an estimated 150,000 organisations.
At the time of reporting, FirstWave Cloud Technology's share price was $0.0080.