PSQ Holdings extends $10 million credit facility to 2025

PSQ Holdings, Inc. (NYSE:PSQH), a company specializing in advertising services, has amended its existing credit agreement, extending the maturity date and modifying financial terms. This move, effective as of Monday, July 1, 2024, is detailed in a recent 8-K filing with the Securities and Exchange Commission.

The amendment pertains to a $10 million revolving loan, which PSQ Holdings assumed following its merger with Credova Holdings, Inc. on March 13, 2024. The original agreement was established with Credova SPV I, LLC as the borrower and PFM Credit Recovery Fund I, LLC, along with OHPC LP, as lenders.

Key changes in the amendment include an extension of the Funding Termination Date from June 30, 2024, to June 30, 2025. Additionally, the amendment increases the advance rate on certain eligible receivables and standardizes the Delinquency Ratios and Liquidated Receivables Percentages for all receivables at 15% and 3%, respectively.

The amendment also revises the Concentration Limits and modifies the interest rate on Aggregate Outstanding Advances to 14.5% per annum. Furthermore, a Non-use Fee will be applied to any portion of Aggregate Outstanding Advances that exceed $5.0 million.

This strategic financial maneuver is intended to provide PSQ Holdings with continued access to capital, enhancing the company's financial flexibility. The information is based solely on the press release statement filed with the SEC and reflects the company's latest financial arrangements without suggesting broader industry impacts or trends.

In other recent news, PSQ Holdings, also known as PublicSquare, has announced plans to migrate its Marketplace segment to the Rumble Cloud platform. This strategic move aims to foster a resilient ecosystem for the company's commerce and payments operations.

The decision has been warmly welcomed by both PublicSquare's CEO, Michael Seifert, and Rumble's CEO, Chris Pavlovski, who see the partnership as a significant step towards growing PublicSquare's Marketplace.

Despite facing challenges, PSQ Holdings has reported a 39% quarter-over-quarter increase in the firm's brands business. This growth comes after the recent acquisition of Credova, a consumer financing and payments company, which has contributed to both revenue and profitability. Roth/MKM has responded to these developments by reducing the price target for PSQ Holdings from $8.50 to $7.50, while maintaining a Buy rating.

Looking forward, PSQ Holdings plans to implement platform changes in the second quarter, with expectations of stimulating further quarter-over-quarter growth. Moreover, the upcoming launch of PSQ Payments is projected to serve as an additional catalyst for profitable growth towards the end of 2024, as noted by Roth/MKM. These are just a few of the recent developments for PSQ Holdings.

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