I'm sorry but if anyone is going to give them a loan, it'll be a private credit fund which will charge them at least 10%+ interest rate and want warrants and want to see a better demonstration of achieving cash flow positive. Yes, they have this lifetime value number but that's on the basis that IHR will be around forever where currently they are burning cash and would need to continue to raise equity. Where does the cash come from to repay the lender?
Look at Pure Asset Management who are regular lenders to cash burning microcaps. They often provide the initial loan (at 9.5% - 14% interest rate with a ton of warrants) and also require an equity raise be conducted at the same time. Given things are even more risky at the moment in terms of capital markets, I think those sort of funds know they are more in demand and will become even more expensive.
They need to bite the bullet and raise some equity. I would be skeptical for any positive announcements they put out in the next few months as I imagine anymore upward share price movement and they'll look to pull the trigger on an equity raise a few days after at a 20% discount.
IHR Price at posting:
8.4¢ Sentiment: Hold Disclosure: Not Held
