Leading smart access control platform provider, TZ limited, has turned its attention to growing its recurring subscriptions after successfully paying down $7.6 million in principal debt.

The company also paid down $392,000 in interest, following several successful capital raises which netted $9.6 million before costs.

TZ also negotiated to convert $2 million of its outstanding debt with First Samuel to equity, at $0.12 cents per share – the same price as the Rights Issue the company ran earlier in the year.

Additionally, First Samuel agreed to provide a new $2.5 million debt facility at a lower rate (the bank bill swap rate or ‘BBSW’ + 4.5%), which will be used to repay TZ’s $2.1 million debt due on 31 July 2021.

TZ CEO Scott Beeton said the company is pleased with the results of its comprehensive recapitalisation efforts.

“The recapitalisation was the final piece of the turnaround strategy. With this work now complete, the full attention of the board and management is now focussed on growing recurring software subscriptions and the newly installed, hosting, monitoring, and maintenance services to our global customer base,” he added.

The company said it will shortly invite shareholders to an extraordinary general meeting to vote on the debt-to-equity conversion and new debt facility.

US sales continue to expand

The reduction in TZ’s debt position comes as the company’s US sales pipeline has experienced significant growth.

In an update to the market, the company announced purchase orders received in the current financial year have already exceeded $9.3 million.

A “substantial” portion of these orders will be completed in the next financial year, and the company noted its growth in the US market demonstrates the benefits of its diversification strategy.

Stay up to date with the latest TZ Limited company news and announcements by registering your details on their investor centre.

Reach Corporate provides Corporate Advisory Services to TZL and have been engaged by them to manager their investor communications.

Sources:

• ASX: TZL announcement – 25 June 2021
• ASX: Benchmark Rates – About BBSW