Ondo InsurTech PLC (LSE:ONDO) said it has agreed a restructuring of a five-year loan note which provides additional non-dilutive financing to support the roll-out of its LeakBot system.
The loan notes, agreed with its largest shareholder Homeserve Assistance, are interest-free until 21 March 2024, and form part of the consideration of the acquisition of the Leakbot business from Homeserve, the company said in a statement.
One key element of the loan is that interest is due from 31 March 2024 to 31 March 2025, rolled up and deferred, it added.
The first repayment of the principal is deferred from 31 March 2025 to 31 March 2026, and the final redemption is extended by a year to 31 March 2029.
The interest rate has also increased to 12% to 10% from 31 March 2024.
"The financial flexibility provided by these terms granted by our largest shareholder supports our accelerated drive to profitability as we initiate contract roll-outs in Denmark, Sweden, the UK and the USA,” said Craig Foster, CEO of Ondo InsurTech.