Close the Loop Accelerates Strategic Transformation with US$10 Million Asset Sale and Debt Reduction Plan
Close the Loop Limited (ASX: CLG) has announced the sale of its Dallas-based ISP Tek Services business for US$10 million as part of a broader strategic transformation focused on strengthening its balance sheet and streamlining operations. The transaction includes US$9 million payable at settlement alongside a US$1 million seller note payable in quarterly instalments.
The proceeds, combined with existing cash reserves, will be used to retire approximately US$16 million in debt, significantly improving the Company’s financial position and lowering ongoing financing costs. Management is also progressing refinancing discussions for the remaining US$19.5 million debt facilities, with expectations of reducing interest rates by approximately 350 to 400 basis points.
Close the Loop also reached agreements regarding its convertible notes, including partial conversion into equity and revised repayment arrangements aimed at improving capital structure certainty. Looking ahead, the Company provided FY27 EBITDA guidance of AU$14 million to AU$16 million, supported by strong momentum across its Packaging and Resource Recovery divisions and expanding AI-driven operational efficiency initiatives.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Close the Loop Accelerates Strategic Transformation with US$10 Million Asset Sale and Debt Reduction Plan
Close the Loop Limited (ASX: CLG) has announced the sale of its Dallas-based ISP Tek Services business for US$10 million as part of a broader strategic transformation focused on strengthening its balance sheet and streamlining operations. The transaction includes US$9 million payable at settlement alongside a US$1 million seller note payable in quarterly instalments.
The proceeds, combined with existing cash reserves, will be used to retire approximately US$16 million in debt, significantly improving the Company’s financial position and lowering ongoing financing costs. Management is also progressing refinancing discussions for the remaining US$19.5 million debt facilities, with expectations of reducing interest rates by approximately 350 to 400 basis points.
Close the Loop also reached agreements regarding its convertible notes, including partial conversion into equity and revised repayment arrangements aimed at improving capital structure certainty. Looking ahead, the Company provided FY27 EBITDA guidance of AU$14 million to AU$16 million, supported by strong momentum across its Packaging and Resource Recovery divisions and expanding AI-driven operational efficiency initiatives.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au