Brief: Appreciate Holdings Recently Faced Certain Economic Headwinds And Liquidity Constraints

Appreciate Holdings

26/04/2023 11:18

April 26 (Reuters) - Appreciate Holdings Inc  SFR.O :
    * APPRECIATE HOLDINGS - RECENTLY FACED CERTAIN ECONOMIC
HEADWINDS
AND LIQUIDITY CONSTRAINTS THAT HAVE CREATED CHALLENGES FOR
OPERATIONS
    * APPRECIATE HOLDINGS INC - OPERATIONS HAVE NOT YET
ESTABLISHED A
CONSISTENT RECORD OF COVERING OUR OPERATING EXPENSES
    * APPRECIATE HOLDINGS - AS OF APRIL 24, HAD ABOUT $0.1
MILLION OF
CASH AND CASH EQUIVALENTS ON OUR BALANCE SHEET
    * APPRECIATE HOLDINGS - AS OF APRIL 24, HAD OUTSTANDING
INDEBTEDNESS IN PRINCIPAL AMOUNT OF $13.0 MILLION
    * APPRECIATE HOLDINGS - ENGAGED IN ONGOING DISCUSSIONS WITH
SENIOR
SECURED LENDER, ST. CLOUD CAPITAL PARTNERS
    * APPRECIATE HOLDINGS - DISCUSSIONS WITH ST. CLOUD REGARDING
COMPLIANCE WITH TERMS OF SECURED LOAN FACILITIES AND PLAN TO
ADDRESS LIQUIDITY CHALLENGES
    * APPRECIATE HOLDINGS - WORKING TO RESOLVE CURRENT LIQUIDITY
CHALLENGES BY ENGAGING IN DISCUSSIONS WITH SOME PARTIES ABOUT
ADDITIONAL SOURCES OF CAPITAL
    * APPRECIATE HOLDINGS-IF UNABLE TO RAISE ADDITIONAL CAPITAL,
COMPLY WITH OBLIGATIONS UNDER SECURED FACILITIES, THERE IS RISK
CO COULD GET NOTICE OF DEFAULT
    * APPRECIATE HOLDINGS - COULD BE REQUIRED TO
DISCONTINUE/REDUCE
SCOPE OF OPERATIONS, INCLUDING THROUGH SALE OF ASSETS, IF NO
OTHER FINANCING OPTIONS AVAILABLE
    * APPRECIATE HOLDINGS - ST. CLOUD TOLD CO THEY BELIEVE MANY
DEFAULTS MAY EXIST UNDER SOME OF CO'S DEBT DOCUMENTS, BUT HAS
NOT YET SENT NOTICES OF DEFAULT
    * APPRECIATE HOLDINGS - DISPUTES MANY OF POSITIONS BEING
TAKEN BY
ST. CLOUD, BUT IS IN ACTIVE DIALOGUE WITH THEM TO RESOLVE THESE
DIFFERENCES

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