Boxlight secures additional $2 million bridge loan

Published 09/07/2024, 16:24
Boxlight secures additional $2 million bridge loan

Boxlight Corp (NASDAQ:BOXL), an educational services provider, has entered into a materially definitive agreement securing an additional $2 million in working capital bridge loan, as per the recent 8-K filing with the SEC. This funding, obtained on July 2, 2024, follows a series of amendments to the company's existing credit agreement with Whitehawk Finance LLC, with the latest being the Sixth Amendment.

The company, headquartered in Duluth, Georgia, initially entered into the credit agreement on December 31, 2021. Subsequent amendments occurred on various dates, with the most recent prior amendment on March 14, 2024.

The Sixth Amendment, disclosed in an April 23, 2024 filing, provided Boxlight with a $2 million working capital bridge loan in April and outlined the terms for an additional $3 million loan to be available in June 2024, subject to compliance with certain loan covenants including Senior Leverage Ratios.

The additional $2 million loan received by Boxlight is part of the company's strategic financial planning to ensure adequate working capital. The terms of the loan stipulate that it is due and payable in full by November 29, 2024. The agreement with Whitehawk Capital Partners LP, acting as collateral agent, and Whitehawk Finance LLC, as lender, reflects ongoing financial arrangements designed to support Boxlight's operations.

The information provided in this article is based on the statements from a press release.

In other recent news, Boxlight Corporation has announced several significant developments. The company reported its financial results for the first quarter of 2024, achieving a positive adjusted EBITDA and reducing its fixed costs by approximately $5 million. Total revenues for the quarter came in at $36.9 million, with an anticipated Q2 revenue between $43 million and $45 million, despite a net loss of $7.1 million.

Boxlight also made strides in leadership, officially appointing Dale Strang as its Chief Executive Officer. Strang, who has been with Boxlight since 2017, brings over thirty years of experience in consumer technology, media, and entertainment sectors.

On the product front, Boxlight introduced FrontRow UNITY and FrontRow UNITY Campus, devices designed to enhance school-wide communication and safety. These devices integrate classroom audio, institutional technology, campus communication, and emergency notification systems into a single platform, potentially offering cost benefits for educational districts.

The company remains focused on managing expenses, reducing debt, and creating long-term value for its customers, employees, and shareholders.

InvestingPro Insights

Boxlight Corp's (NASDAQ:BOXL) recent financial moves, including securing an additional $2 million in working capital, reflect its strategy to maintain liquidity and fund operations. An analysis using real-time data from InvestingPro reveals several key metrics that investors may find valuable. With a market capitalization of just $5.98 million, Boxlight is trading at a low revenue valuation multiple, suggesting potential for investors looking for undervalued stocks. However, it's important to note that the company has not been profitable over the last twelve months, and analysts do not anticipate it will be profitable this year.

InvestingPro Tips indicate that Boxlight's liquid assets exceed its short-term obligations, which could provide some financial stability. Still, the company's price has performed poorly over the last decade, and it has seen a significant decline in the past year with a -73.66% one-year price total return. Additionally, Boxlight does not pay a dividend to shareholders, which might be a consideration for income-focused investors.

For those interested in a deeper dive into Boxlight's financials and future prospects, the full suite of InvestingPro Tips includes further analysis and metrics. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 9 additional InvestingPro Tips available for Boxlight, which could provide more comprehensive insights into the company's financial health and stock performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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