Careteq Repays $138K in Director Loans a Month Early Using Placement Funds
Careteq has repaid all outstanding director and company secretary loans totalling A$125,000 in principal plus A$13,186.36 in capitalised interest, approximately one month ahead of the contractual maturity date of 4 June 2026. The early settlement follows the completion of the company’s two-tranche placement to institutional and sophisticated investors, with Tranche 2 settled after shareholder approval at the General Meeting on 23 April 2026.
Breakdown of loan repayments
The company has settled four separate loan facilities extended by board members and management during a period of tight liquidity.
| Lender (Name & Role) | Principal (A$) | Capitalised Interest (A$) | Total Repaid (A$) |
|---|---|---|---|
| Mark Simari (Chair) | $26,500.00 | $2,848.93 | $29,348.93 |
| Stephen Munday (NED) | $47,000.00 | $4,774.68 | $51,774.68 |
| Brett Cheong (NED) | $26,500.00 | $2,875.07 | $29,375.07 |
| David Lilja (Company Secretary) | $25,000.00 | $2,687.67 | $27,687.67 |
| Total | $125,000.00 | $13,186.36 | $138,186.36 |
The loans accrued interest at 12% per annum on a simple daily-accrual basis from receipt of funds to the repayment date. All facilities were originally scheduled to mature on 4 June 2026 but have been settled early using placement proceeds.
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What are related-party loans and why do companies use them?
Related-party loans occur when directors or company insiders provide short-term funding to the business, typically during periods of constrained liquidity or while awaiting capital raising completion.
These arrangements require disclosure under ASX Listing Rules due to the potential for conflicts of interest, as directors are both governance decision-makers and creditors in these scenarios. Repaying these loans ahead of schedule demonstrates the company no longer requires bridging finance and removes related-party obligations from the balance sheet. For small-cap investors, the Careteq director loan repayment signals a transition from emergency funding mode to a more stable capital structure following the successful placement.
Capital allocation and remaining placement funds
The Board considers early settlement of related-party loans an appropriate use of a portion of placement proceeds, removing the related-party indebtedness from Careteq’s balance sheet ahead of maturity. The balance of placement funds will continue to be applied in accordance with the use-of-funds disclosure made 10 March 2026, including:
- Project acquisitions
- General working capital purposes
The convertible note issued to Mr Antanas Guoga (announced 10 June 2025) is unaffected by these repayments and remains on foot under existing terms. The Board has emphasised alignment with shareholders through the prompt return of working capital extended at a critical period for the company. Investors can track remaining funds against the stated use-of-funds framework disclosed in March 2026.
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Board acknowledgment
The Board thanked directors for their continued financial support to Careteq during a period when the company required short-term liquidity support. Each director, as a related party, is taken to have received a financial benefit in the amount of the accrued interest repaid. The Board considers the interest paid to be on arm’s length commercial terms, consistent with the 12% per annum rate agreed and disclosed when the loans were entered into on 10 June 2025.
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