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GCT Semiconductor Holding, Inc. (NYSE:GCTS), a semiconductor firm with a market capitalization of $113.61 million, has entered into a significant financial agreement with its Chairman of the Board, Kyeongho Lee. On Monday, the company’s subsidiary, GCT Research, Inc., secured a loan of approximately 6.5 billion South Korean Won (USD $4,522,998) under the terms of the new January Loan Agreement. According to InvestingPro data, the company’s current ratio of 0.32 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets. This loan carries a 12% annual interest rate and is set to mature on February 24, 2025. Notably, the agreement stipulates that interest payments to the lender must not exceed $120,000 in any 12-month period.
Additionally, GCT Semiconductor disclosed an amendment to a previous loan agreement from November 11, 2024. The amendment increases the penalty for late payment from 1.25% to 3.00% per month of the unpaid principal amount. This change applies if the borrower fails to make timely payments of the principal or accrued interest. The original November Loan Facility was for up to 4 billion South Korean Won (USD $2,721,088), with similar interest rate terms and a maturity date of December 31, 2024.
Investors should note that these financial moves could impact the company’s cash flow and debt servicing capabilities. The details of these agreements will be included in GCT Semiconductor Holding, Inc.’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This article is based on a press release statement from the company’s recent SEC filing. For comprehensive analysis of GCTS’s financial health and additional insights, including 8 more exclusive ProTips, visit InvestingPro.
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