Sprintex Ltd (ASX:SIX) has announced the extension of convertible note and loan agreements totalling $2.85 million, providing the company with crucial breathing room as it prepares for a substantial scale-up in its sales and marketing activities.
The extension agreements include key backing from Sprintex’s largest shareholder, China Automotive Holdings Ltd (CAHL), along with support from Distacom Enterprises Ltd. The move will allow Sprintex to accelerate its expansion efforts, particularly as it seeks to capitalise on international sales opportunities and meet growing demand for its innovative clean air technology and automotive solutions.
Extension of key financial agreements
The extension agreements include a pivotal $2.15 million convertible note with CAHL. Originally due to mature on June 30, 2025, the note has now been extended to June 30, 2026, subject to shareholder approval.
In addition, two loans totalling $700,000 with Distacom have been extended from June 30, 2025, to September 30, 2025. These agreements, with all other terms unchanged, reflect ongoing support from Sprintex’s key financial backers.
According to Sprintex executive chairman Steve Apedaile, the agreements offer "additional financial flexibility at a critical time in the company’s sales cycle”.
"We are very pleased to have reached favourable terms with both CAHL and Distacom,” he said. “These agreements highlight the considerable support for Sprintex’s stated strategy from existing counterparties, including another vote of confidence from the company’s largest shareholder in CAHL."
Building on momentum with strategic sales initiatives
The extensions come at a crucial time as Sprintex looks to secure promising sales opportunities. Among the key initiatives is a trial with Van Drie Group, the Netherlands' largest veal producer, which is evaluating Sprintex’s Zero Liquid Discharge – Ultra Pure (ZLD-UP) system. This evaluation is expected to pave the way for an order of 200 stationary units, generating significant revenue of €4.8 million (A$8.58 million) for the company.
These developments are consistent with Sprintex's ongoing international expansion, with recent announcements of key partnerships and new business ventures.
In late June, Sprintex secured a strategic contract extension in Turkey, while also ramping up its European presence with a major manure-to-fertiliser system order.
The company’s efforts to scale up operations globally are further supported by a previous $3.25 million capital raise, enabling it to increase production and meet growing demand across multiple sectors, including industrial and automotive markets.
Growing product portfolio and market positioning
Sprintex, founded in 2003, has developed a strong market position through its innovative, energy-efficient solutions in the industrial and automotive sectors. The company is known for its engineering, research, product development, and manufacturing of ultra-high-speed electric motors and clean air compressors.
Sprintex’s G Series blowers are widely used in wastewater treatment, aquaculture, pharmaceuticals, and other industrial applications, ensuring efficient and reliable performance.
In the automotive sector, Sprintex continues to advance its offerings in hybrid and petrol vehicle systems, with a focus on high-speed electric motor-driven compressors and its legacy in twin-screw superchargers. The company’s technologies are also making waves in clean energy, where Sprintex is developing fuel cell compressors for hydrogen and natural gas applications.
With these new financing arrangements in place, Sprintex will now seek to accelerate its growth trajectory, bolstered by a strong product lineup and increasing global demand for its solutions.