Beonic Limited secures loan facility from Blue Venshures for expansion and restructuring

Beonic Limited (ASX:BEO), a global leader in providing Internet of Things (IoT) solutions to airports and retail sectors, has announced a significant financial milestone. The company has successfully secured a loan facility of USD $2.1 million (~AUD$3 million) with Blue Venshures SPV 1 LLC (“Blue Venshures”), marking a pivotal move to bolster its growth and restructuring initiatives along with ensuring general working capital needs. This financial arrangement is poised to replace the previous $1.8 million loan that Beonic held with Export Finance Australia, which was bound by stringent financial covenants demanding a minimum of $3 million cash in bank at the end of each quarter.

The newly established facility with Blue Venshures is notably devoid of any financial covenants, providing Beonic with enhanced capital flexibility. This strategic financial maneuver is expected to furnish Beonic with the necessary working capital and a more adaptable financing arrangement to propel its growth strategy forward. Beonic’s CEO, Billy Tucker, expressed gratitude towards Export Finance Australia for their past support and voiced his enthusiasm about Beonic’s future prospects, especially highlighting the recent contract wins with Abu Dhabi Airport and JFK International. Tucker, who recently took the helm at Beonic, lauded the potential within the business and pledged his contribution to the facility, alongside Beonic’s Chair, Bob Alexander, and other senior executives, to ensure the capital flexibility required for improved financial performance and shareholder returns.

The terms of the loan facility are straightforward, with a commencement date of January 25th, 2024, and a loan term of two years, featuring a 15% per annum interest rate paid quarterly. Importantly, the loan arrangement is non-dilutive to shareholders and carries no rights for loan conversion into Beonic shares, safeguarding shareholder interests. Blue Venshures, a Special Purpose Vehicle (SPV) owned and controlled by Advenshure LLC, has been granted 1st Ranking Security over Beonic Ltd and its subsidiaries, with no financial covenants imposed.

Beonic’s mission to create “intelligent places” is further empowered by this financial injection. The company’s AI-driven platform is revolutionizing how people interact with various spaces such as airports, retail venues, stadiums, and smart cities by optimizing touchpoints, enhancing loyalty, and delivering differentiated experiences. Beonic’s technology leverages a myriad of data sources, including WiFi, camera feeds, people counting, LiDAR, CCTV, and IoT devices, amalgamating these with contextual data like weather, retail sales, and socio-demographic information to boost operational performance.

Moreover, Beonic’s commitment to maximizing the value derived from data is epitomized through its data & marketing services, offering clients expert consultancy in data science and digital marketing. This holistic approach not only addresses the immediate challenges faced by businesses but also strategically positions Beonic for sustainable growth and innovation in the IoT solution domain.

Beonic Limited’s strategic decision to secure a $2.1 million loan facility from Blue Venshures is a testament to the company’s robust growth trajectory and its commitment to enhancing capital flexibility. This move is particularly significant in the context of Beonic’s recent successes, including major contract wins and the expansion of its innovative IoT solutions across key sectors. The absence of financial covenants in this new facility underscores a mutual trust between Beonic and Blue Venshures, offering Beonic the leeway to pursue its ambitious growth strategies without the stringent financial constraints of traditional loans. As Beonic continues to forge ahead in creating intelligent spaces with its cutting-edge technology, this financial partnership with Blue Venshures is expected to play a crucial role in driving the company’s future success and financial stability.