Nuchev Locks in $2M Unsecured Loan at BBSW+12% Interest
Nuchev Limited has locked in a $2 million unsecured working capital facility from major shareholders, aiming to fuel its expansion and push towards profitability in the near term.
- Unsecured $2 million working capital facility established
- Facility funded by two substantial shareholders
- Interest rate set at BBSW plus 12% per annum
- Facility available immediately, repayable by March 2028
- Funding intended to support growth and positive cashflow goals
Nuchev's Strategic Funding Move
Australian nutritional and wellness company Nuchev Limited (ASX, NUC) has announced the establishment of a $2 million unsecured working capital facility. This funding, provided by two of its major shareholders, is designed to underpin the company's ongoing growth initiatives and working capital needs.
CEO Nathan Cheong emphasized that the facility will enable Nuchev to move swiftly in executing its well-advanced expansion plans. The injection of capital is expected to provide the flexibility necessary to explore further opportunities that could accelerate the company’s trajectory towards positive operating cashflows and profitability in the short to medium term.
Terms and Implications of the Facility
The facility, available from 30 October 2025, carries an interest rate pegged to the Bank Bill Swap Rate (BBSW) plus a 12% margin annually, with interest payable quarterly. Additionally, a 1% line fee applies to the undrawn portion, and a 2% establishment fee was paid upfront. The loan is unsecured and must be repaid by 31 March 2028, with provisions allowing for voluntary prepayments and redraws.
While the relatively high interest margin reflects the risk profile and the unsecured nature of the loan, it also signals the shareholders’ confidence in Nuchev’s growth potential. The capital injection is timely, given the company’s expanding footprint across Australia, New Zealand, China, and Vietnam, with products like Oli6® gaining traction in multiple retail channels.
Growth Prospects and Market Position
Nuchev’s portfolio includes well-known brands such as Oli6®, Bio Practica, and Medicine Tree, alongside exclusive distribution rights for international brands like Brauer and Skin Physics. The company’s multi-channel approach, including pharmacy, grocery, and cross-border e-commerce platforms, positions it well to capitalize on rising consumer demand for nutritional and wellness products.
This facility not only supports day-to-day operations but also provides a financial runway to accelerate market penetration and product innovation. Investors will be watching closely to see how effectively Nuchev leverages this capital to improve cash flow and move towards profitability.
Bottom Line?
Nuchev’s new funding facility sets the stage for accelerated growth; but the cost of capital and execution will be key to watch.
Questions in the middle?
- How will Nuchev allocate the $2 million to maximize growth and cash flow?
- Can the company achieve profitability before the facility’s March 2028 repayment deadline?
- What impact will the high interest margin have on Nuchev’s financial performance?
