Yowie Group intensifies efforts to reclaim a substantial loan from Keybridge Capital, issuing a statutory demand and launching a share placement to shore up finances amid tariff challenges.
- Yowie demands repayment of $4.6 million loan from Keybridge
- Keybridge’s voluntary administration upheld by NSW Supreme Court
- Yowie issues statutory demand and plans conditional scrip takeover bid
- Private placement raises A$516k to support working capital
- US tariffs delay Yowie’s inventory dispatch, adding financial pressure
Loan Recovery Efforts Intensify
Yowie Group Limited (ASX: YOW) has escalated its attempts to recover a significant loan advanced to Keybridge Capital Limited. Since February 2025, the relationship between the two companies has been fraught with legal and administrative challenges. After requesting immediate repayment of over $4.4 million and issuing a default notice, Yowie faced Keybridge’s appointment of a voluntary administrator, a move later validated by the NSW Supreme Court despite shareholder opposition.
Legal Proceedings and Financial Claims
Yowie has pursued claims including $1.67 million related to prior litigation security, and despite court rulings affirming Keybridge’s solvency based on funding promises, repayment has not materialized. The removal of Keybridge’s voluntary administrator by WAM Active Limited, a key shareholder, further complicated the situation. In response, Yowie issued a creditors statutory demand for $4.63 million, signaling a firm stance on recovering its funds.
Capital Raising Amid Operational Pressures
Concurrently, Yowie announced a private placement of over 34 million shares at a slight premium, raising A$516,000. This capital injection aims to bolster working capital as the company navigates ongoing uncertainties, notably US tariffs impacting inventory held in bonded warehouses awaiting dispatch from China. These tariffs add a layer of complexity to Yowie’s supply chain and financial planning.
Strategic Moves and Future Outlook
Yowie’s conditional scrip takeover bid for Keybridge shares underscores its strategic intent to gain greater control amid the repayment impasse. The company’s focus remains on stabilizing its financial position while continuing to expand its unique brand licensing and confectionery business globally. However, the intertwined legal and trade challenges present a delicate balancing act for management and investors alike.
Bottom Line?
Yowie’s next moves in the Keybridge saga and tariff navigation will be critical for its financial stability and growth trajectory.
Questions in the middle?
- Will Yowie’s statutory demand compel Keybridge to repay or trigger further legal action?
- How will ongoing US tariffs affect Yowie’s inventory costs and profit margins?
- What impact will the conditional takeover bid have on Yowie’s control over Keybridge?