Yowie Arranges $1 Million Facility from Parent Keybridge to Manage Cash Flow
Yowie Group has arranged a $1 million short-term funding facility from parent Keybridge Capital to manage cash flow while investigating former directors' use of funds and intra-group loans.
- Yowie Group obtains $1 million funding facility from parent Keybridge Capital
- Short-term cash flow support extends to 30 September 2025
- Internal review underway on former directors' use of recent share placement funds
- Joint review of prior intra-group loan arrangements with Keybridge Capital
- Funding facility secured under ASX rules with variable interest rates based on repayment timing
Short-Term Funding to Address Cash Flow
Yowie Group Ltd (ASX, YOW), the confectionery company known for its unique chocolate products, has announced a new funding arrangement to support its short-term liquidity needs. The company has secured a funding facility of up to AUD 1 million from its parent company, Keybridge Capital Limited (ASX, KBC), designed to cover working capital requirements through to the end of September 2025.
Internal Review Raises Governance Questions
Alongside this funding update, Yowie disclosed it is conducting an internal review focused on the use of funds by former directors following a share placement earlier this year in May 2025. This review signals potential governance concerns and highlights the company’s efforts to ensure transparency and accountability in its financial management.
Scrutiny of Intra-Group Loans
In addition to the internal investigation, both Yowie and Keybridge Capital are jointly reviewing previous intra-group loan arrangements that were put in place by the prior board. These loans, which involve financial transactions between the two entities, are under examination to clarify their terms and implications, reflecting a broader effort to resolve legacy financial complexities.
Funding Terms and Interest Rates
The funding facility is structured on commercial terms and secured to the maximum extent permitted by ASX listing rules. Interest rates vary depending on whether the facility is repaid before or after 30 September 2025. If repaid early, the secured portion will incur 9% annual interest and the unsecured portion 12%. Should repayment extend beyond September, these rates increase to 11% and 14% respectively, underscoring the cost of extended borrowing.
Implications for Investors and Market Confidence
This announcement comes at a critical juncture for Yowie, as it balances immediate liquidity needs with the imperative to resolve questions about past financial conduct. While the funding arrangement provides a necessary bridge, the ongoing reviews may influence investor sentiment and market confidence depending on their outcomes. The company’s transparency in disclosing these developments is a positive step, but the full impact remains to be seen.
Bottom Line?
Yowie’s short-term funding eases cash flow pressures, but internal reviews could reshape its financial outlook.
Questions in the middle?
- What findings will emerge from the internal review of former directors’ fund usage?
- Could the intra-group loan review lead to financial restatements or legal actions?
- Will Yowie require further funding beyond September 2025, and on what terms?
