Hall of Fame Resort increases loan facility and extends merger deadline

Hall of Fame Resort & Entertainment Co (OTC:HOFV) announced Wednesday that it has amended its loan agreement with CH Capital Lending, LLC, raising its available credit facility from $17 million to $20 million. The amendment, signed September 30, allows the company and its subsidiaries to request an additional $3 million for general corporate purposes, subject to certain restrictions. The maturity date of the facility was also extended.

The lender, CH Capital Lending, is affiliated with Stuart Lichter, a director of the company. The agreement includes new covenants requiring Hall of Fame Resort to facilitate the transfer of collateral to the lender if a planned take-private transaction is not completed by October 17, 2025. The company’s board has instructed management to cooperate with the lender in preparing agreements related to potential foreclosure of properties used as collateral for the loans.

The company also disclosed that, on September 5, it received a notice of intent to terminate its merger agreement from HOFV Holdings, LLC and related parties, citing the company’s failure to meet certain obligations. The termination date was initially set for September 17 and later extended to September 30. On September 30, the buyers agreed to further extend the deadline to October 17, contingent on the terms of the amended loan agreement.

The buyers have agreed not to exercise their rights under the merger agreement before October 17, unless Hall of Fame Resort defaults on its obligations, excluding the requirement to secure third-party consents from holders of its 8% Convertible Notes due 2025. The company stated that failure to obtain these consents could have a material adverse effect on its liquidity and financial condition, potentially affecting its ability to continue operations. This risk is particularly significant given the company’s substantial debt burden of $283.14 million and rapid cash burn rate, as highlighted in InvestingPro’s comprehensive analysis, which includes 15 additional key insights available to subscribers.

This information is based on a press release statement included in a recent SEC filing.

In other recent news, Hall of Fame Resort & Entertainment Company shareholders have approved a merger agreement with HOFV Holdings, LLC. The decision was made during a reconvened special meeting, with 3,396,118 shares voted in favor of the merger. Meanwhile, Hall of Fame Resort & Entertainment has also increased its credit facility with CH Capital Lending, LLC, from $14 million to $15 million. This amendment allows the company to request an additional $1 million for general corporate purposes. The credit facility increase was facilitated through a Ninth Amendment to its Note and Security Agreement. Furthermore, Hall of Fame Resort & Entertainment adjourned a special stockholder meeting to September 24, 2025, to allow more time for proxy solicitation. The company has been actively engaging its stockholders to ensure their participation in the voting process. These developments highlight the company’s strategic financial and corporate maneuvers.

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