A New Cause for Concern: Smith Micro Adds a New Debt & Financing Risk

Smith Micro (SMSI) has disclosed a new risk, in the Debt & Financing category.

Smith Micro successfully retired its 2022 Convertible Notes at the end of 2023, yet it faces lingering constraints due to the preceding securities purchase agreement. These restrictions, remaining post-retirement, potentially curtail Smith Micro’s access to specific equity financing avenues. Consequently, this could impair the company’s capital-raising activities, crucial for operations, expansions, or strategic endeavors. This financial straitjacket may thus pose a significant business risk for Smith Micro in the short to medium term.

Overall, Wall Street has a Moderate Buy consensus rating on SMSI stock based on 2 Buys.

To learn more about Smith Micro’s risk factors, click here.