Motus GI Holdings, Inc. (OTCQB:MOTS), a medical technology company, has received a Notice of Default from Kreos Capital VI (Expert Fund) LP, the company disclosed in a recent SEC filing. The notice, dated June 17, 2024, is a result of a plan of distribution approved by Motus GI's board of directors on June 6, 2024, which constitutes an event of default under the terms of their Loan Agreement dated November 28, 2023.
The Loan Agreement had been providing a financial facility to the company, but the approval of the distribution plan triggered the default. The company, which is based in Ft. Lauderdale, Florida, specializes in surgical and medical instruments and apparatus, as indicated by its standard industrial classification.
The filing, made public today, does not detail the specifics of the distribution plan or the financial implications of the default notice. However, such events can often lead to accelerated repayment terms or additional fees, which could impact the company's financial position.
Motus GI has not provided any further public statement on the matter as of the filing date. The implications for the company's future operations and financial arrangements remain to be seen following this development.
This news comes as an important alert to investors and stakeholders of Motus GI Holdings, Inc., who will be monitoring how the company addresses the default and its ongoing relationship with Kreos Capital.
The information reported is based on the latest 8-K filing with the Securities and Exchange Commission by Motus GI Holdings, Inc.
InvestingPro Insights
The recent default notice received by Motus GI Holdings, Inc. from Kreos Capital is a significant development for the company and its investors. In light of this, a look at key financial metrics and analyst insights from InvestingPro provides a clearer picture of the company's current standing.
With a market capitalization of just $0.27 million and a troubling revenue decline of nearly 48% over the last twelve months as of Q1 2024, the financial challenges for Motus GI are apparent. Despite a quarterly revenue growth of 14.29% in Q1 2024, the company's gross profit margin remains negative at -24.46%, underscoring the difficulties in achieving profitability.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, suggesting some optimism amidst the adversity. Moreover, the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in navigating the default situation. However, the company's stock has experienced significant volatility, with a staggering 65.39% price drop over the last month and a 97.06% decline year-to-date as of the 172nd day of 2024, reflecting investor concerns.
For a more comprehensive analysis, Motus GI investors can explore additional insights and tips on InvestingPro, including a total of 19 InvestingPro Tips that can guide investment decisions. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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