Verb Technology Company Inc (VERB)

[dukeb]

The 8K announcing the asset sale also mentioned (although did not name) a possible acquisition - there is a non binding LOI:

The Target’s unaudited financial statements indicate that for the year-ended December 31, 2022, the Target generated transactions totaling approximately $9.5M in gross merchandise value (“GMV”) and was cash-flow positive. It was represented that the GMV was generated by the Target’s approximately 70,000 current active subscribers, each of whom receive daily auto-generated communications from the Target about the preferred brands and products the subscribers selected at sign-up, available for sale each day

VERB is supposed to receive $5 million upon closing of the asset sale (another $ 1.5 million over the next 2 years in a payout provision).

As someone here pointed out when the asset sale was announced, what happens to the loan that advanced VERB money against future revenues? The pro-forma balance sheet shows that liability staying with VERB. I would think the sale of the only revenue generating asset would violate the terms of the loan agreement in which case the lender is going to want their money PRONTO. That's $ 1.3 million going out the door immediately.

And...the pro-forma income statement for the 1st quarter of 2023 shows that General & Administrative expenses, net of the disposition, was more than $ 2.5 million.

That $5 million cash infusion is going to be burned up quickly. How the hell is there going to be money left over to buy another company?