• $6m facility with $5m initial drawdown and $1m for working capital
• Facility will repay existing $4.6m loan, eliminating near-term obligations
• Strengthens financial position and supports continued growth of Operator XR strategy

xReality Group Limited (ASX:XRG) has announced that it has entered into a binding term sheet with Causeway Asset Management for the refinancing of its existing debt facilities on an exclusive basis. The new $6m facility will include an initial $5m drawdown, with an additional $1m available for working capital upon achievement of agreed milestones. The facility will be used to fully repay the company's existing $4.6m loan, eliminating all near-term financial obligations and providing xReality with improved financial flexibility to support the continued growth of its Operator XR strategy. The new facility has a maturity date of March 2027, with interest payable quarterly and standard covenants. As part of the transaction, xReality will issue 5,000,000 warrants to the lender with an exercise price 20% above the 30-day VWAP at initial drawdown. The completion of the refinancing remains subject to customary conditions, including final due diligence and Board approval.

The new facility will position xReality strongly for the next phase of growth, marking the end of the debt restructure phase and providing the company with a stable debt position and substantially improved gearing.