Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 15

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 8
Chunk 15
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$4 million was allocated for equipment finance, (ii) AUD$8 million for working capital to purchase
canola seed with max trade advance tenor of 120 days with BBSY plus 1.5% margin rate per annum, and (iii) AUD$2 million for interest
only loan over three years with interest rate of variable base rate minus a margin of 3.48% per annum for business growth and working
capital related to the crushing plant’s expansion.

     16 

On
February 14, 2024, the Company issued a note for an equipment loan to the Commonwealth Bank of Australia in an aggregate principal amount
of AUD$4,000,000 (the “Secured Bank Loan”). The note has a term of 60 months and a variable interest rate of 7.95%. The Secured
Bank loan is payable in twenty (20) quarterly payments of AUD$244,643, commencing on May 19, 2024. Commonwealth Bank of Australia, as
senior lender, has a total of $2 million secured by first mortgages over the Company’s freehold land and buildings. The financial
assets pledged as collateral represent a floating charge and cannot be disposed of without the consent of the financier. On 5th December
2024, the Company received the breach letter of loan covenant from CBA. It relates to the inventory balance to Net working capital ratio
set at 50% for September Quarter of 2024 has been breached. The breach was caused by the fact that the Company purchased large amount
of canola seed to fulfil the commission of expanded crushing plant in Cootamundra, NSW, Australia. CBA has decided not to exercise its
right relating to the breach but reserve the right to exercise its rights relating to any breaches in the future. Total balance of AUD$4,862,315
of secured borrowings have been reclassified into current borrowings as a result of breach in covenants.

Convertible
Note

In
connection with the closing of the Business Combination, the Company closed the private placement, pursuant to the private offering rules
under the Securities Act of 1933, as amended (the “Securities Act”), of the Arena Warrants and Debentures pursuant to the
Securities Purchase Agreement dated August 23, 2023 between the Company, AOI, EDOC, certain AOI subsidiaries and Arena Investors, LP
(the “PIPE Investors”) and executed the Arena Transaction Documents including