Ispire Technology (NASDAQ: ISPR) Secures $20 Million Loan Facility from Avon River Ventures LLC

Ispire Technology Inc. recently announced its entry into a Master Loan and Security Agreement with Avon River Ventures LLC, securing a loan facility of up to $20 million. This agreement, signed on February 10, 2025, outlines the terms under which the company will receive financing in three tranches. The first tranche of $5 million is set to be followed by a second tranche of equal value and a final tranche of $10 million, with disbursements expected every fifteen to thirty days.

Under the terms of the agreement, Ispire Technology will pay a fixed annual interest rate of 15.25% on the borrowed amount. Each tranche’s initial three months constitute an interest-only period, after which the company will begin repaying both principal and interest as per the agreement. The company also has the option to prepay the loan, subject to a 3% prepayment premium.

To secure the loan, Ispire Technology has provided a first-priority security interest in various assets, including accounts receivable, inventory, intellectual property, and others. In addition, the company must maintain a specified minimum value of inventory as collateral for the loan facility.

The agreement includes representations, warranties, covenants, and events of default typical of such financings. These provisions entail reporting and maintenance requirements, restrictions on incurring new debt, and triggers for default, such as non-payment obligations. In case of default, Avon River Ventures LLC reserves the right to enforce remedies under the agreement.

In tandem with the loan facility, Ispire Technology has engaged Avon in a consulting agreement to provide advisory services. The agreement, effective until February 10, 2026, includes cash payments and stock compensation worth up to $532,000 and $320,000, respectively, subject to certain conditions.

This financial decision underscores Ispire Technology’s strategic planning for growth and development. The loan facility provides the company with additional financial resources to support its operations and initiatives moving forward.

The above information is a summary of the filing with the Securities and Exchange Commission made by Ispire Technology on the described date. For more detailed information, please refer to the company’s official filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ispire Technology’s 8K filing here.

About Ispire Technology

Ispire Technology Inc researches, develops, designs, commercializes, sales, markets, and distributes e-cigarettes and cannabis vaping products worldwide. The company was founded in 2019 and is based in Los Angeles, California. Ispire Technology Inc operates as a subsidiary of Pride Worldwide Investment Limited.