Sports nutrition business announces new £8m finance facility
Science in Sport, the AIM-listed sports nutrition group, has secured a new £8m invoice financing facility from its lending bank, HSBC, for an initial one-year term.
The company, which has a base in Nelson, East Lancashire, announced it was exploring this facility at the time of the recent equity placing on April 23, in which the group raised gross proceeds of approximately £4.5m.
The debt facility is expected to remain undrawn in the short term, and further strengthens the company’s liquidity position.
Chief executive Stephen Moon said: “This undrawn £8m debt facility complements our recent equity fundraising by providing further headroom in our liquidity position should it be required during any future disruption caused by COVID-19.
“It also gives us additional balance sheet flexibility as we continue to deliver our high-growth strategy.
“The size of the facility at £8m underlines the strength of our relationship with HSBC and the bank’s confidence in the quality of our business.”
The £4.5m share placing last month was implemented to improve the company’s balance sheet to help it through the current coronavirus crisis.