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Collagen Solutions gets Covid funding in US and New Zealand
20th May 2020 12:37
(Sharecast News) - Collagen Solutions announced on Wednesday that its wholly-owned operating subsidiaries in the US and New Zealand have received a mix of loan and grant funding based on those governments' Covid-19 economic support programmes.
The AIM-traded firm said Collagen Solutions USA received $0.24m in government-backed loan funding through one of its banking providers.
It said the loan had a two-year term, with an interest rate of 1% per year, with payments of principal and interest deferred for the first six months.
The loan could be forgiven in whole or in part if used for eligible purposes, including payroll and rent in the United States in the first eight weeks of the term.
"The company believes that a substantial part of this funding will be forgiven, effectively acting as a form of grant," the board said in its statement.
"To the extent all or some portion of the principal amount is not forgiven, Collagen Solutions USA is obligated to make equal monthly payments of the remaining principal and interest."
Collagen Solutions NZ, meanwhile, received $35,000 from that country's Ministry for Social Development as part of the Wage Subsidy Scheme.
The scheme does not need to be repaid, provided the scheme criteria are met.
"The company believes these criteria will be met, and therefore this subsidy is also a form of grant," the board added.
"The company continues to pursue additional potential non-dilutive sources of cash including various governments' Covid-19 loans and grants."
At 1158 BST, shares in Collagen Solutions were up 3.45% at 3p.
The AIM-traded firm said Collagen Solutions USA received $0.24m in government-backed loan funding through one of its banking providers.
It said the loan had a two-year term, with an interest rate of 1% per year, with payments of principal and interest deferred for the first six months.
The loan could be forgiven in whole or in part if used for eligible purposes, including payroll and rent in the United States in the first eight weeks of the term.
"The company believes that a substantial part of this funding will be forgiven, effectively acting as a form of grant," the board said in its statement.
"To the extent all or some portion of the principal amount is not forgiven, Collagen Solutions USA is obligated to make equal monthly payments of the remaining principal and interest."
Collagen Solutions NZ, meanwhile, received $35,000 from that country's Ministry for Social Development as part of the Wage Subsidy Scheme.
The scheme does not need to be repaid, provided the scheme criteria are met.
"The company believes these criteria will be met, and therefore this subsidy is also a form of grant," the board added.
"The company continues to pursue additional potential non-dilutive sources of cash including various governments' Covid-19 loans and grants."
At 1158 BST, shares in Collagen Solutions were up 3.45% at 3p.