EOS was hardly in any position to negotiate. The loan terms represent this kind of loan provided to a Company with negative profits and bleeding cash left right and center and without hard assets to provide security. The terms ultimately reflect the bargaining position of the parties, and it was actually perhaps a break that Soul Patts was a shareholder who was willing to take on the risk and had this sort of capital to deploy.
Most important thing is the cash balance of $46m post repayment. Manage the Contract asset to get cash up, and hopefully they sort out this credit offset issue with the UAE as it is a dispute with EOS's main customer. Then its get down to basics- build revenue to get to EBITDA positive and sort out these partnerships with alliance partners to develop new products to reduce the capital burden. Disappointing nothing has come to fruition after over a year of talks.
Not out of the woods yet imo.
EOS Price at posting:
92.5¢ Sentiment: None Disclosure: Held
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