Ondo InsurTech PLC on Tuesday said it agreed to restructure its five-year loan notes with its largest shareholder Homeserve Assistance Ltd, prompting shares to rise.
Shares in Ondo InsurTech were up 9.7% to 23.58 pence each in London on Tuesday late morning.
The London-based claims prevention technology firm for home insurers said the notes restructuring would provide additional non-dilutive financing flexibility for continued rapid roll-out of the LeakBot system, a smart water leak alarm that spots hidden leaks before they become big problems.
Ondo InsurTech said the key terms of the restructuring included deferring interest due to March 31, 2025 from March 31, 2024. Previously, the loan notes were interest-free until March 31, 2024.
The first repayment of principal has also been deferred to March 31, 2026 from March 31, 2025, Ondo InsurTech said, while the final redemption has been extended by one year to March 31, 2029.
Lastly, it has increased the interest rate after the interest-free period to 12% from 10%. The loans remain redeemable by Ondo InsurTech by refinancing or repayment with 10 days’ notice.
‘The financial flexibility provided by these terms granted by our largest shareholder supports our accelerated drive to profitability as we initiate contract roll-outs in Denmark, Sweden, the UK and the US,’ said Chief Executive Officer Craig Foster.
On Monday, Ondo InsurTech said it signed a new five-year contract with a division Sweden’s largest non-life insurer Landsforsakringar to support the national rollout of LeakBot. In late June, Ondo InsurTech said it signed an exclusive deal with Firemark Collective to run a new LeakBot proof-of-concept pilot for Australia and New Zealand markets.
In mid-June, Ondo InsurTech said it signed on for a temporary pilot programme with G4S Ltd, in order to test a potential business model for Leakbot in Denmark, while in early June, Ondo InsurTech said it won a deal with Mutual of Enumclaw to distribute its LeakBot system to homeowner insurance customers in Washington State, US.
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