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.
The agreement positions Algorae to optimise overall working capital management while supporting ongoing commercial expansion in the ANZ region.
At the time of reporting, Algorae Pharmaceuticals' share price was $0.020.