Post by
mingzhu on Jun 10, 2023 1:01pm
expecting interest payment increases from $1.66m of last Q
to 2m of current Q even without renewing old debt because of this new debt:
"Credit facilities increased to help pay for the NetFortris earnout. Subsequent to quarter-end, Sangoma upsized its revolving credit facility (from $6mm to $20mm) and swingline credit facility ($1.5mm to $5mm) on April 6. On April 23, the company drew down $8.6mm from its revolver to pay the $5.5mm earnout for NetFortris. Although NetFortris has seen solid growth in net bookings (the criteria for the earnout), it was not able to hit the elevated targets to achieve the full $11.5mm maximum earnout payment. The remaining amount drawn down was used to cover costs related to the accelerated Star2Star share iss"
It increased $17.5m debt after Quater-end. 111m of old debt + new 17.5m=128.5m. If it has $30m "free cash flow" to pay old debt, certainly it would not have to incur new debt. It must hide "the free cash" under mattress, i am afraid.