25 June 2018
Australian Securities Exchange (ASX) Announcement
- Sensera gains access to US$2.3 million in new funding for capital equipment expenditures, including US$1.1 million in cash, through a sale and leaseback agreement covering production equipment and lease line credit facility with Farnam Street Financial
- New funding further strengthens Sensera’s balance sheet, provides flexibility for future capital equipment requirements and empowers continued expansion of Sensera’s facilities to respond to growth in demand for the Company’s sensor-based IoT solutions
- Deferment of Sensera’s next milestone payment of EUR 765,000 associated with the August 2017 acquisition of nanotron from 1 July to 1 October 2018 also positively impacts cash flow
Sensera Limited (ASX: SE1, “Sensera” or “the Company”), an Internet of Things (IoT) solution provider that delivers sensor-based products transforming real-time data into meaningful information, action and value, is pleased to announce that it has entered into a sale and leaseback agreement covering production equipment belonging to its Boston microfabrication facility.
The Company has achieved a sale price of US$1.1 million for the equipment, the proceeds of which will further strengthen the Company’s balance sheet and provide flexibility for future capital equipment requirements.
Sensera and its counterparty, technology lease financing solution provider Farnam Street Financial, have agreed to an initial two-year leaseback term on existing equipment in the Woburn, MA facility.
Sensera and Farnam Street have also agreed upon a US$1.2 million lease line credit facility to empower continued expansion of the Company’s MicroDevices fabrication facilities.
Sensera CEO, Ralph Schmitt, said:
“Optimising our balance sheet is a critical step in maximising Sensera’s growth potential at a time when we are experiencing growth in demand. Gaining access to US$2.3 million in new funding, including US$1.1 million in immediate cash, provides strong support for our capital needs and gives potential customers greater confidence in the company.
“When we combine this funding package with our continued efforts to expand margins by reducing costs and operating expenditures, we expect to gain material benefits in terms of near-term cash flow. The company has taken material steps in reducing overall operating expenses by approximately 30% versus the fiscal 2018 plan. All of these steps have impacted the cash runway while not having a negative, material effect on the business.”
Sensera is also pleased to advise that it has gained nanotron shareholder approval to defer its next milestone payment of EUR 765,000 associated with the August 2017 acquisition of nanotron GmbH from 1 July 2018 to 1 October 2018. Including this tranche, the total deferred cash consideration due remains EUR 1.865 million by 1 October 2018.