Ecofibre (ASX:EOF) said that its administrators entered a short-term funding arrangement for a facility of up to AU$4.1 million with Van Diemens Land Finance to support the firm's operations and allow the administrators to conduct a sale process, according to a Tuesday Australian bourse filing.
The facility has a term of six weeks from the first drawdown and carries an interest rate of 1.25% per week. The term can be extended by mutual agreement, and the interest rate then would be 1.75% per week.
The administrators noted that the firm would not be able to continue operations without the funding, and it would have had to be wound up.
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