Xtek Ltd - Loan Facility Secured to Mass Produce Ballistic Helmets
Xtek Ltd (ASX:XTE)

Loan Facility Secured to Mass Produce Ballistic Helmets

Highlights

What's happened?

XTEK Limited (ASX:XTE "XTEK") has secured a A$2.5m loan facility from the Commonwealth Bank of Australia (CBA). This loan will be used to invest into the equipment for the mass production of XTEK’s XTclave™ ballistic helmets.

What are the key highlights?

  1. Funds will be used primarily to enhance XTclave ballistic helmet manufacturing line within XTEK’s state-of-the-art manufacturing facility in Adelaide.
  2. This investment places XTEK in a stronger position to deliver on large commercial orders for XTclave ballistic helmets.
  3. XTEK is in active negotiations to supply helmets to international customers. XTEK confirms that good progress has been made recently and the first order remains on track for mid-2020.

What does this announcement mean?

SmallCapInsider from Mawson Graham provides perspective on this recent announcement.
SmallCapInsider
Written by SmallCapInsider
Published Jun 16, 2020

The potential for XTEK to produce and sell ballistic helmets is part of the company's strategy to continue increasing total revenues as well as gross profit margins. It is also testament to the versatility of the company's XTclave technology. The production of ballistic helmets is in addition to the ballistic plates the company is producing and has already received its first international orders for (refer to 5th May 2020 announcement for further details). Furthermore we believe funding this investment via a loan is a sensible strategy for the company due to the low levels of debt on the company's balance sheet.

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Mawson Graham

Managing Director's Summary

Philippe Odouard

“This CBA loan facility represents non-dilutive funding and is a step in optimising XTEK’s capital structure. The funds will be used to design, build and install new state-of-the-art equipment into the ballistic helmet manufacturing line in the Adelaide manufacturing facility. This upgrade enhances our helmet manufacturing capabilities and ensures XTEK is well positioned to deliver on large quantities of our rifle ballistic helmets into the world’s biggest markets. This helmet uniquely protects against AK47 rounds using an ultra-light Polyethylene (PE) material. Significant progress has been made with international customers recently, and we are working towards finalising the first helmet order in the near term. We look forward to accelerating our commercialisation strategy and further showcasing our advanced manufacturing capability.”

Philippe Odouard
Managing Director, Xtek Ltd

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