INVO Bioscience Secures $265,000 Merchant Cash Advance to Boost Working Capital
In a strategic move to enhance liquidity and support general corporate functions, medical device company INVO Bioscience, Inc. (NASDAQ:INVO) has secured a Merchant Cash Advance of $265,000. This financial agreement provides an immediate cash injection, with the company agreeing to repay $384,250 of its future sales.
Under the terms of the agreement, INVO Bioscience will repay the advance through weekly remittances of $9,606 until the obligation is fulfilled. After accounting for transaction costs and fees, the net proceeds received by the company amount to $251,750.
The agreement was made possible with the approval of Decathlon Alpha V, L.P., INVO Bioscience's senior secured lender. Decathlon stipulated that interest multiples in the Revenue Loan and Security Agreement would increase by 0.15x if INVO Bioscience fails to secure a net equity investment of $1,000,000 by November 30, 2024.
This move by INVO Bioscience highlights its proactive approach to financial management amidst the competitive medical instruments and apparatus industry. By pursuing a Merchant Cash Advance, the company aims to ensure steady cash flow for its immediate needs.
Analysis:
- INVO Bioscience secures $265,000 Merchant Cash Advance for working capital support.
- Company to repay $384,250 of future sales with weekly remittances.
- Net proceeds amount to $251,750 after accounting for costs and fees.
- Decathlon Alpha V, L.P., grants approval for financial agreement.
- INVO Bioscience takes proactive approach to financial management.
- Strategic move reflects company's ongoing efforts to maintain liquidity.
- Investors should approach with caution due to company's market position and profitability challenges.
- INVO Bioscience shows remarkable revenue growth, but market capitalization remains low.
- Additional insights available for comprehensive analysis of company's financial health.