Chroma-Decent analysis
My take on the 8K that was released after hours on a Friday (roll eyes), is that the deal is basically an interest only bridge loan secured against equity, then converts to principle. Considering the company moved operations to a shared work space in Cupertino California, they have already slashed burn rate. The money should be plenty to bridge them through litigation and further Corp M&A. My suspicion is there will be follow up news that rallies the PPS in the next few weeks. At .60-1.00 per share, I’ll probably look to close my trade.
DO keep in mind, should they default, our new lender will short this into sub-penny land.
Long INVT