Hall of Fame Resort Secures Additional $2.15M Financing

CANTON, Ohio - Hall of Fame Resort & Entertainment Co (NASDAQ:HOFV) has entered into a financial agreement to bolster its corporate funds. On January 24, the company, along with its subsidiaries, amended its existing loan arrangement with CH Capital Lending, LLC, increasing the available loan amount from $2 million to $4.15 million. This amendment allows the company to access an additional $2.15 million for general corporate purposes, within certain limitations.

The revised maturity date for the loan is now the earliest of the following: the closure of the company’s proposal to go private, the termination date in the event of a merger, or the occurrence of specific defaults. To secure this additional financing, Hall of Fame Resort has agreed to provide collateral that includes equity interests in two subsidiary retail companies, income from its Gridiron Gastropub restaurant, and rights under certain sponsorship agreements.

This financial move comes as part of the company’s broader strategy to strengthen its financial position. The additional funds are intended for general corporate use, ensuring operational continuity and the potential expansion of the company’s business ventures. InvestingPro analysis reveals concerning metrics, including a weak current ratio of 0.14 and rapid cash burn rate. With over 14 additional key insights available on InvestingPro, investors can access comprehensive analysis through the platform’s detailed Pro Research Report, part of its coverage of 1,400+ US equities.

Hall of Fame Resort & Entertainment Co, headquartered in Canton, Ohio, is known for its services in the amusement and recreation sector. The company’s relationship with CH Capital Lending, an affiliate of company director Stuart Lichter, underscores the interconnected nature of its financial arrangements.

The terms of the agreement, including the establishment of a deposit account control agreement for a cash collateral account, are detailed in the full text of the Second Amendment. The funds in this account can be used for the company’s ordinary business activities, subject to the agreement’s conditions.

The information provided here is based on a press release statement and reflects the company’s latest financial developments as reported in its SEC filing. The company’s stock is publicly traded on the Nasdaq Capital Market under the ticker HOFV, with warrants under HOFVW.

In other recent news, Hall of Fame Resort & Entertainment Co reported a decline in revenues by 23% to $4.7 million and a net loss of $15.8 million in Q2 2024. In light of these figures, Singular Research maintained a Buy-Long Term rating but lowered the 12-month price target. The company also revised its 2024 revenue range to $20 million to $22 million. Furthermore, Hall of Fame Resort is facing potential Nasdaq delisting due to failure to hold an annual meeting within the stipulated time. The company has until February 24, 2025, to submit a compliance plan.

In other developments, the company has secured an extension of its loan maturity date with CH Capital Lending, LLC until December 2025. However, it faced a lease termination for its subsidiary, HOF Village Waterpark, LLC, due to a payment default. The company also announced the postponement of its 2024 Annual Meeting of Stockholders as it considers a proposal from IRG Canton Village Member, LLC to go private. Lastly, the company plans to expand its gaming vertical and expects new assets to boost profitability from 2025 onwards. These are the recent developments concerning Hall of Fame Resort & Entertainment Co.

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