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Butn Limited (ASX:BTN)

ALERT: Price-sensitive ASX Announcement for BTN
Current share price for BTN : $0.012 -0.003 (-20%)+
Announcement
Release
2 Jul 2026 10:03AM
Price at Release
$0.015
Full Release
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Summary
Butn Limited announced the sale of its non-core Smash Repair Factoring Business to Working Capital Finance Pty Ltd for $4.1 million. The transaction is designed to simplify Butn's operating model and refocus the company on its core strategic priorities: its technology-led finance platform, embedded funding partnerships, and Moneybox investment business. The sale involves an immediate $2.0 million payment, deferred considerations, and allows Butn to retain a funding relationship with WCF. Additionally, Butn has extended its Corporate Credit Facility with Mighty Partners to August 2026, which combines with the asset sale to reduce the company's cost base by approximately $1.5 million, aligning with Butn's path to sustainable profitability.
Key Points
  • Butn Limited has executed a binding sale agreement with Working Capital Finance Pty Ltd (WCF) for the sale of its Smash Repair Factoring Business for $4.1 million.
  • The transaction includes $2.0 million received at completion, approximately $2.0 million of deferred consideration, and a $100,000 deposit already received.
  • The Smash Repair Factoring Business is considered non-core, contributing less than 15% of FY25 Gross Revenue and less than 5% of FY25 Group Assets.
  • Butn will provide WCF with a secured funding facility post-completion, enabling continued secured interest income.
  • The sale allows Butn to focus on its core strategic priorities and simplifies its operating model.
  • The Company has amended its Corporate Credit Facility with an agreed phased repayment schedule, extending the maturity date to 31 August 2026.
  • The transaction and debt facility amendment are expected to reduce Butn's cost base by over $1.5 million and contribute towards sustainable profitability.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.