Default Risks on Convertible Notes Could Force Smith Micro to Sell Core Assets or Shut Down Operations

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

Smith Micro faces significant risk from the additional rights granted to holders of its Convertible Notes in an event of default, including increased interest rates and the ability of holders to demand cash redemption of all or part of the notes. If Smith Micro lacks sufficient funds to meet these redemption obligations, holders could enforce their security interests, potentially foreclose on key assets, and force the company to curtail or even cease operations.

The average SMSI stock price target is $3.00, implying 360.19% upside potential.

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