AltX-Listed Huge Group on Thursday said it had secured a loan agreement that would enable the funding of the company’s significant growth.
In a statement to shareholders, Huge Group said that, following a “high level of interest” from debt finance providers, wholly owned subsidiary Huge Software had entered into a short-term R20-million loan-funding agreement with Afrasia Special Opportunities Fund (ASOF).
The ASOF funding was expected to be cheaper than the cost of equivalent equity funding on a rolling 12-month basis.
“The board of directors of the company has taken into account the rapid growth being experienced by the company and the various sources of capital that are available to it in order to fund this growth,” Huge said.
The agreement remained subject to certain conditions precedent, including a corporate guarantee from the parent company.