The kicker is the minimum earn fee. In the event of early repayment they still need to pay ALL the interest and line fees that would have been earned. I’ve never seen anything like it.
Minimum earn is $127m for a $70m facility. That’s $57m in fees and interest that HAS TO BE PAID. Let that sink in.
You’re almost paying double for some working capital lines and a term facility. Plus they’ve gifted them 5% of the company. It’s unfortunate how far this company has fallen. Glad I got out a long time ago but I’ve followed the story.
EOS will need more raises IMO but I ultimately see EOS defaulting and either a debt for equity swap or WHSP simply taking over the business with equity holders wiped out.
Shocked that it’s trading higher today but I guess they have bought some time.
EOS Price at posting:
55.0¢ Sentiment: None Disclosure: Held
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