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Sensera (ASX:SE1) - CEO, Ralph Schmitt
CEO, Ralph Schmitt
Source: YouTube (Pitt Street Research)
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  • Technology company Sensera (SE1) has improved its financial position after successful negotiations with its senior debt providers
  • The company has resolved the default of a financial covenant under its debt facility and had default interest waived
  • This has allowed Sensera to receive over A$1 million in government support from the United States and Germany
  • In exchange, the company has issued 51.2 million warrants to its lenders to acquire Sensera shares
  • Sensera shares fell over 11 per cent today, closing worth 2.3 cents each

Technology company Sensera (SE1) has improved its financial position after successful negotiations with its senior debt providers.

Most notably, the company has resolved the default of a financial covenant under its debt facility.

The company’s two lenders, PURE Asset Management and Altor Credit Partners, also agreed to waive default interest. Furthermore, the debt providers will provide more relaxed covenants, including waiving the negative pledge covenant.

This has allowed Sensera to receive significant amounts of monetary support from the governments of the United States and Germany.

The company has received approximately A$943,000, under the US Government’s Payroll Protection Program promissory note. Sensera also received approximately A$333,000 in support from Germany’s Government.

In exchange, the company has issued 51.2 million warrants for its lenders to acquire fully paid ordinary shares in Sensera. 40 million of those shares will go to PURE, with the remaining 11.2 million going to Altor.

This issue of warrants is not subject to approval from the company’s shareholders. The warrants will expire five years from the date of issue.

The lenders will be able to exercise their warrants at three cents per share. There will also be anti-dilution clauses for share issuance above 15 per cent in any 12-month period.

As a result of these negotiations, Sensera is now no longer in default under its debt facility. A strong financial position is especially necessary as the company works to navigate the impacts of COVID-19.

The company has experienced some impacts, including subdued revenues and disruptions to its supply chain. However, its pipeline for new orders remains robust overall, with revenues showing resilience.

Sensera’s progress has been boosted by several recent design wins. In addition, the company’s restructuring, cost-cutting initiatives, cash management, and cash influx has helped.

Sensera’s management said it is confident it has made meaningful progress towards having a properly capitalised business.

Sensera shares fell 11.54 per cent today, closing worth 2.3 cents each.

SE1 by the numbers
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