Ebet shares plunged to a 52-week low of 67 cents, marking a 28% decrease. This significant drop comes after the company made adjustments to its existing term loan, resulting in an increase in borrowing availability. Additionally, the discretionary revolving loan has been upsized from $2 million to $4 million.
The stock’s downward trend continued as it closed Friday’s session with a 39% decline, bringing the total decrease in the past 12 months to a staggering 98%.
Ebet, an operator of an online i-gaming casino website, announced that the amended credit agreements now enable the conversion of all interest expenses from current cash payments to pay-in-kind additions to principal. These principal payments will be due upon maturity.
As a result of this move, over $339,000 of monthly cash interest payments will be deferred until the end of the forbearance period. Notably, the forbearance period has been extended from October 31, 2023, to June 30, 2025.
However, it is worth noting that the interest rate on both the term loan and the revolving loan has been slightly increased from 15% to 16.5%.
These changes aim to provide Ebet with additional financial flexibility during these challenging times.