SIT­U­A­TION

• Ecofi­bre Lim­it­ed (ASX: EOF; the ​“Com­pa­ny”) is the own­er and oper­a­tor of a port­fo­lio of high-qual­i­ty advanced man­u­fac­tur­ing and tech­nol­o­gy busi­ness­es in the US and Australia.
• The Com­pa­ny lost $27MM (Adj. EBIT­DA) from 2021 to 2023 result­ing in con­strained liq­uid­i­ty, exac­er­bat­ed by an oper­at­ing cash burn plus a May 2024 failed sale-lease­back trans­ac­tion intend­ed to solve a $10MM real estate term loan pay­ment due July 1, 2024.
• The Com­pa­ny engaged Chi­ron in May 2024 as both its sole finan­cial advi­sor and exclu­sive invest­ment banker to cre­ate a cash preser­va­tion plan and restruc­ture its bal­ance sheet while pre­serv­ing as much equi­ty val­ue as possible.

OUT­COME

• Chi­ron simul­ta­ne­ous­ly exe­cut­ed its Finan­cial Advi­so­ry and Invest­ment Bank­ing man­dates, com­plet­ing in Decem­ber 2024:
• Finan­cial Advisory:
  • Chi­ron worked with the Company’s man­age­ment team to cre­ate a rolling 13-week cash bud­get to fore­cast liquidity.
  • Chi­ron nego­ti­at­ed with the incum­bent real estate lender for six-months of for­bear­ance to Decem­ber 31, 2024. Unre­lat­ed to the Com­pa­ny, the lender required this hard deadline.
• Invest­ment Banking:
  • Chi­ron arranged a com­pre­hen­sive refi­nanc­ing to repay the real estate loan and pro­vide suf­fi­cient work­ing cap­i­tal for future growth plans
  • Chi­ron built the CIM, finan­cial mod­el, and tar­get­ed 500+ investors of dif­fer­ent spe­cial­ties includ­ing ABL lenders, M&E lenders, real estate investors, uni-tranche investors and oth­er alter­na­tive cap­i­tal providers.
• Result:
  • Chi­ron arranged $19MM of new cap­i­tal from three dif­fer­ent cap­i­tal providers, with the incum­bent real estate lender receiv­ing par compensation.
  • This restruc­tur­ing secured the Company’s near-term financ­ing posi­tion and gen­er­at­ed $4MM of liquidity.