The Davis, California-based company boosted its existing accounts receivable credit facility by $13 million to a total of $20 million and added a $3 million inventory-backed credit facility to bring the total amount available to $23 million.
The new facilities are thanks to a deal with LSQ Funding Group, which may purchase up to $20 million of eligible customer invoices from Marrone, a figure that represents a significant boost from the $7 million-ceiling agreed upon in 2017, the firm said in a statement.
The substantial increase reflects LSQ’s “continued confidence” in the growth of Marrone’s business, according to Dan Ambrico, CEO at LSQ.
“Our partnership with LSQ has given us excellent cost-effective financial vehicles by which we can improve our liquidity and working capital to accommodate our rapid growth,” said Jim Boyd, CFO of Marrone Bio Innovations.
“I expect these facilities to help address the seasonal demand and varying sales cycles across the various crops and customers we serve.”
Founded in 2006, Marrone Bio holds more than 400 issued and pending patents and has brought six US Environmental Protection Agency-registered biological product lines and one biostimulant to market.
Its suite of biologicals includes a bevy of bacteria strains and plant extracts that fight pests, control plant diseases and reduces stress from sun and water.
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