NuRAN Wireless (CSE: NUR) continues to do all that it can to survive, announcing this morning that it is one step closer to receiving funding crucial for its ability to continue to operate.
The company has secured a non-binding mandate letter for a US$5 million loan with a third party facilitator. The loan is to take the form of a senior secured bridge facility, which will have a two year term with a bullet principal repayment at maturity. Upon maturing, it is expected to be able to be refinanced as long term debt.
Funds from the facility, if secured, can be used for the refinancing of energy assets on operating sites or in inventory, the value of which is said to currently sit at US$1.8 million.
At the same time, NuRAN has managed to stave off certain debenture holders for a little longer. Debentures issued in July 2022, which had a maturity date of July 12, 2023, have seen their maturity date extended by a year to July 12, 2024. In exchange, the conversion price of the debt has been lowered from $1.35 to $0.40 per share, and the original issue discount, originally set at 10%, has been increased to 16%. The implication is that the maturity value of the debt has increased to $2.6 million.
READ: NuRan Issues Bold Guidance For 2024/5 While Cutting Costs Over Lack Of Funding
While a step in the right direction, NuRAN continues to suffer from working capital shortfalls. As of September 30, the company had just $159,246 in cash on the balance sheet, and total current assets of $12.1 million. Trade payables meanwhile amount to $8.6 million, with total current liabilities coming in at $22.5 million.
The company as of late has managed to get by through the use of receivables factoring and by pushing off a series of small lenders, despite loans being overdue. From an operations standpoint, the company saw revenues of $797,067 in the most recent quarter, offset by $890,292 in cost of sales, resulting in negative margins. The company posted a net loss of $3.3 million for the quarter ended September 30, 2023.
NuRAN Wireless last traded at $0.11 on the CSE.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
