Eden Innovations has secured a $2.2 million strategic investment to fully repay its remaining iBorrow debt, eliminating costly interest payments and strengthening its balance sheet ahead of anticipated revenue growth.
- Secured $2.2m convertible note from 7 Enterprises Pty Ltd
- Fully repaid $2.7m remaining iBorrow debt
- Eliminated over $1m annual debt servicing costs
- US revenue grew ~50% to $2.3m in FY25
- Strengthened balance sheet supports 2026 growth momentum
Strategic Debt Repayment
Eden Innovations Limited (ASX, EDE) has taken a decisive step to strengthen its financial position by securing a $2.2 million convertible note from 7 Enterprises Pty Ltd. The funds have been deployed to fully repay the remaining $2.7 million of its high-cost iBorrow debt facility, a move that removes a significant burden of ongoing interest and debt servicing costs.
This repayment marks the culmination of a disciplined capital management strategy that has seen Eden reduce its iBorrow debt from $8.7 million as of June 2025 to zero. The company also completed a $7.6 million divestment of a US property, further underpinning this balance sheet reset.
Improved Cash Flow and Operational Flexibility
Previously, the iBorrow loan was costing Eden more than $1 million annually in interest and related servicing fees, significantly impacting operational cash flow. By eliminating this debt, Eden expects to see a substantial improvement in liquidity and cash flow, accelerating its pathway to positive cash flow operations.
The convertible note terms are supportive, with interest capitalised rather than requiring cash repayments, and the option to convert into equity under mutually agreed terms. This structure preserves Eden’s operational flexibility as it scales its revenue streams.
Momentum in US Market and Product Sales
Eden’s recent financial and operational performance has been encouraging, particularly in the US market where revenue grew approximately 50% to $2.3 million in FY25. The company is also seeing increased traction with its OptiBlend® and EdenCrete® Pz7 products, including new quotations and sales to international customers such as Holcim Ecuador.
With annualised sales of EdenCrete® Pz7 estimated at around $1.2 million for FY26, the company is positioned to leverage its strengthened balance sheet and reduced cash flow constraints to capitalize on this growth momentum.
Investor Confidence and Future Outlook
Daniel Raihani, Director of 7 Enterprises, highlighted the confidence institutional investors have in Eden’s technology platform and commercial progress. The strategic investment not only de-risks Eden’s capital structure but also signals strong support for its growth trajectory.
Executive Chairman Gregory Solomon expressed gratitude for the supportive terms of the convertible note, underscoring the company’s commitment to achieving positive cash flow and sustainable operations.
Bottom Line?
Eden’s debt elimination and strengthened balance sheet set the stage for a potentially transformative 2026, but investors will watch closely for execution on growth and conversion of the convertible note.
Questions in the middle?
- Will Eden convert the $2.2 million convertible note into equity, and what impact will this have on share dilution?
- How soon will the sale of Eden’s US property complete, and what proceeds will it generate?
- Can Eden sustain its US revenue growth and translate it into consistent positive cash flow?