• Sale of ISP Tek Services for US$10 million
• Repayment of US$16 million in debt
• Settlement of convertible notes
• FY27 EBITDA guidance of $14m to $16m

Close the Loop Limited (ASX: CLG) has announced a strategic transformation with the sale of ISP Tek Services LLC for US$10 million, marking a significant milestone in its restructuring efforts. The transaction includes US$9 million payable at settlement and a US$1 million seller note paid in quarterly installments. The sale proceeds will be used to repay approximately US$16 million of outstanding debt, strengthening the company's balance sheet. Additionally, the company has reached agreements to refinance its residual debt facilities, aiming to reduce interest rates by 350 to 400 basis points. The company also settled its convertible notes, converting US$4.15 million into CLG shares and repaying US$2.5 million in cash. The company expects to generate EBITDA in the range of $14 million to $16 million for FY27, driven by strong performance in its Packaging and Resource Recovery divisions.

FY27 EBITDA guidance of $14m to $16m

Close the Loop is confident in its outlook for FY27, with a strengthened balance sheet and simplified operating structure focused on its core businesses.