Hall of Fame Resort increases loan facility and extends merger deadline

Hall of Fame Resort & Entertainment Co (OTC:HOFV) announced Thursday that it has amended its loan agreement with CH Capital Lending, LLC, increasing the borrowing capacity from $20 million to $22 million. The amendment, effective October 17, 2025, allows the company and its subsidiaries to access an additional $2 million for general corporate purposes, subject to certain restrictions.

The updated agreement also extends the maturity date of the loan. The earliest of several dates will now apply, including October 31, 2025, or the closing of a pending merger, among other conditions. The company’s total debt stands at $283.14 million, with a concerning current ratio of 0.08, indicating potential liquidity challenges. Discover comprehensive debt analysis and more with a InvestingPro subscription, which includes detailed Pro Research Reports for over 1,400 US stocks. If the company does not secure agreements from holders of its 8% Convertible Notes due 2025 to exchange those notes for equity by October 24, 2025, or fails to deliver required consents and documents by October 31, 2025, the loan could become due earlier.

As part of the amendment, Hall of Fame Resort and one of its subsidiaries granted a security interest in certain membership interests to CH Capital Lending through a pledge agreement.

The company also disclosed it received a letter on October 22, 2025, from parties involved in a planned merger, extending the deadline to complete the merger agreement from October 17 to October 31, 2025. The extension is contingent on the terms of the amended loan agreement. The letter stipulates that, absent any new defaults outside a specific section of the merger agreement, the buyer will not exercise its rights or remedies before October 31.

If Hall of Fame Resort cannot obtain the necessary consents from holders of its 8% Convertible Notes due 2025, the company indicated that this could have a material adverse effect on its liquidity and financial condition, potentially impacting its ability to continue operations. This concern is reflected in the company’s WEAK Financial Health Score of 1.33 from InvestingPro, with the stock already down 72.85% over the past year. Despite these challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.

This information is based on a statement in a filing with the Securities and Exchange Commission.

In other recent news, Hall of Fame Resort & Entertainment Co has made several significant financial and corporate moves. The company announced an amendment to its loan agreement with CH Capital Lending, LLC, increasing its credit facility from $17 million to $20 million. This adjustment allows Hall of Fame Resort to access an additional $3 million for general corporate purposes. Additionally, the maturity date of this facility has been extended, with new covenants involving collateral transfer if a planned take-private transaction does not occur by October 17, 2025.

In a separate development, shareholders of Hall of Fame Resort approved a merger with HOFV Holdings, LLC. The decision was made during a reconvened special meeting, with 3,396,118 shares voting in favor of the merger. Previously, the company had also increased its credit facility with CH Capital Lending from $14 million to $15 million, marking a series of strategic financial adjustments. These developments indicate ongoing efforts by Hall of Fame Resort to bolster its financial standing and corporate structure.

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