The Ebet Inc (NASDAQ: EBET) stock price soared 130.4% despite the lack of news releases from the gambling company as investor interest in the company soared. Over 12.06 million Ebet shares had changed hands at the time of writing.
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In my last article on the company, I pointed out its last press release was in early February, when it registered a direct offering worth $6.5 million, pricing each of its new shares at $1.02. The company’s share price has since fallen way below this level.
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Despite lacking news releases, EBET recently filed a Form 8-K release with the US Securities and Exchange Commission (SEC). The Form 8-K acknowledged that it had entered into a final obligation by signing a credit agreement with CP BF Lending, LLC, in which the lender agreed to make a single loan worth $30 million to the company.
The loan required the company to maintain minimum liquidity and other financial covenants. Ebet has received multiple waivers on the agreed with the lender, with the last waiver extending the deadline to June 20, 2023. However, the company still does not expect to meet the conditions stipulated.
Ebet noted that there was no assurance that the lender would continue extending the waivers to the company and that there was a significant likelihood that the company may have to negotiate a forbearance agreement with the lender before the June 20, 2023 deadline,w which happens to be today.
The company would have to sign a forbearance agreement with the lender to prevent the lender from seeking specific remedies under the Loan, including but not limited to the acceleration of the loan repayment due to default(s).
However, Ebet warned investors there was no guarantee that it would successfully negotiate such a deal. The company’s board of directors had established a committee of independent directors to review and evaluate the potential strategic alternatives for the company in light of the preceding.
*This is not investment advice.
Ebet stock price.
The Ebet stock price soared 130.38% to trade at $0.4414, from Monday’s closing price of $0.1916.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.