F45 Training Holdings - Equityholders Are Facing The Perfect Storm
Summary
- Company reduces FY2022 expectations dramatically with the shortfall mostly blamed on the inability to access $250 million in previously announced growth capital commitments.
- Founder, President, CEO, Chairman and largest shareholder Adam Gilchrist resigns but will be eligible for substantial one-time cash payments.
- CFO Chris Payne will be eligible for a multi-million dollar cash retention bonus simply for staying with the company through October 15.
- Company was required to negotiate a waiver with its credit facility lender after violating debt covenants.
- Given tight liquidity, violation of debt covenants and the unsettling CFO retention bonus, investors might have to prepare for the worst and seriously consider selling existing positions and moving on.
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.
I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.
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