This may perhaps not be a ideal case in point of robbing Peter to pay Paul, but it is very near. Ainsworth Activity Technologies has experienced a couple of difficult decades, seeing a drop in its yearly effectiveness in 2019 prior to 2020 brought more losses due to COVID-19. A submitting (pdf) it just submitted to the Australian Securities Exchange (ASE) suggests that it has received a new 5-calendar year credit history line truly worth $35 million and, although that could be seen as most likely superior news, closer assessment proves in any other case. Ainsworth is using the funds to pay off an additional credit rating line it had.
Ainsworth, through its Ainsworth Activity Technological know-how Inc. subsidiary, picked up a new secured-credit score facility really worth $35 million by a deal it labored out with US-dependent Western Alliance Bancorp. On the other hand, the company additional, “Proceeds of US$28 million from this new facility have been employed to extinguish all organization obligations below the prior revolving credit history facility with Australia and New Zealand Banking Group Ltd (ANZ).” AGT Pty Ltd and Ainsworth Video game Technology Ltd. are mentioned as guarantors of the new credit rating facility.
Aspects about the new mortgage, this sort of as interest, what Ainsworth will do with the leftover $7 million and additional, weren’t provided in the submitting, but ought to be introduced shortly. The corporation is established to release its hottest earnings information upcoming Thursday, February 25, at which time all the updates are envisioned to be delivered. Ainsworth provided a hint at what’s to come with the update subsequent week, including that it is prepared to exhibit “improved revenue” for the last six months of 2020. It expects to exhibit a 71% increase about the AUD$42 million ($32.68 million) it described for the very first half of the yr, but even now has extra function to do. That determine would be 33% significantly less than what it reported for the past six months of 2019.
Need to that prediction come legitimate, it would be a huge improvement in excess of Ainsworth’s preceding forecast. CEO Lawrence Levy explained past November that COVID-19’s ongoing strain on the gaming marketplace was forcing a prolonged retraction and additional, “We cautiously count on the hard industry ailments experienced” in the preceding fiscal calendar year “to continue on in the first 50 percent, fiscal yr 2021. As a result, for [the first half of] fiscal-calendar year 2021, we hope to report a decline ahead of tax for the team, excluding the impacts of overseas exchange and a single-off products, of roughly AUD15 million [$11 million], which is in line with the company’s anticipations specified the impact of the September quarter.”