JSE-listed Huge Group has renewed a R20-million short-term loan agreement with Afrasia Special Opportunities Fund (ASOF).
After entering into the 12-month funding agreement a year ago, the deal was extended for another 12 months at a prime-plus-9% interest rate a year.
The loan was repayable in one lump sum on November 30, 2016.
“After careful consideration, the board is of the view that the cost of the ASOF funding will, on a rolling 12-month basis, be cheaper than the cost of equivalent equity funding,” the company said in a statement.