AI and Autonomous Drones developer RocketDNA Ltd (ASX: RKT) has successfully executed a $1 million unsecured revolving debt facility with ACM AEP, a wholly owned subsidiary of Altor Capital, a leading alternative asset management company.
Altor Capital, via its Emerging Growth Fund, a major shareholder in RocketDNA, has agreed to provide a revolving debt facility of up to $1 million, that will enable the company to accelerate its growth plans to deploy AI-enabled xBot autonomous drone solutions in a number of customer markets.
Key terms of the debt facility agreement include:
- Two tranches of $500,000 each, with the second tranche available from 1 January 2025 subject to the Lender’s investment committee’s approval;
- 8% p.a. interest rate over a 42-month term;
- 1% per annum fee payable on any undrawn amount of each tranche (if any); and
- Can be repaid anytime during the term.
In addition, RocketDNA will issue to Altor Capital, 20 million Tranche 1 Options for the Tranche 1 Advance and 20 million Tranche 2 Options for the Tranche 2 Advance, exercisable at $0.011 per share and expiring 36 months from 30 August 2024 and 1 January 2025 respectively.
CEO Christopher Clark said this financing structure aligns with RocketDNA’s strategy to secure the necessary capital while preserving its shareholder value and enhancing its growth trajectory in the rapidly evolving drone and AI sectors.
"Altor Capital has been a major shareholder in RocketDNA since January 2023. During this time Altor Capital has worked closely with the company and has developed a core understanding of our business requirements and growth profile.
“This financing provides RocketDNA with flexible and non-dilutive working capital to drive key strategic initiatives, including the deployment of our AI-driven xBot autonomous drone solutions to enterprise customers, where deployment has taken longer than initially anticipated.
“Additionally, the funds will support the continued development and enhancement of our customer experience and accelerate the adoption of the technology.
“RocketDNA’s AI-enabled xBot autonomous drone solutions deliver mission critical data services to enterprise customers, and the company is now well positioned to scale the business by taking advantage of positive industry tailwinds for AI and drone technology.”
