Media, page-91

This means the interest rate is the higher of:

1. SOFR + 8% = 5.3% + 8% = 13.3%

or

2. 4% + 8% = 12%

So as things stand, they are paying 13.3% on the loan. If the SOFR drops below 4%, they will be paying 12% on the loan. 12% is the lowest rate that will be attributed to the loan. And they pay this, regardless of whether they even draw down the funds.

If they default, an additional 4% is payable. So (for example) if they defaulted when the current SOFR is being applied, the interest rate would be 17.3%. If they default if / when the SOFR is below 4% then the applicable interest rate would be 16%.

They also have to pay fees, fees, fees and fees. They also had to issue discounted heavily discounted options to the lender.

Market reaction is actually subdued given the desperation of taking on such a punitive facility.

Looks like Jim's sole objective was not having to admit he needed to raise capital before 2025, in spite of his representations in previous presentations that 2025 would be the earliest additional cash would be needed and even then, it would only be needed to expand the business into new indications and markets, not backfill the existing business.

It sounds to me that the RECELL GO issue is more serious than a 4-6 month delay. It also sounds like Jim is a fair-weather CEO. Front and centre and relatively transparent when things are going well, no so much when they aren't ...

Terrible announcement.