I have mixed feelings about this agreement. While it is great to have this much needed non dilutive capital injection to keep the lights on, I don't know how I feel about the terms.
High interest rate, short repayment window and a loan secured against key IP worries me as it can be disastrous if Spenda doesn't use this capital wisely to hit operational targets before the repayment hammer drops in 3 years time. There is no mention of current revenue performance or how close Spenda actually is to operational break even, something that will probably help me evaluate the risk a bit better.
The other potential red flag for me here is the resignation of a Cap appointed non executive director. This could potentially indicate a shift in governance or strategic direction, though handled very diplomatically here.
SPX Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
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