Grove Collaborative Holdings, Inc. (GROV) has disclosed a new risk, in the Debt & Financing category.
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Grove Collaborative Holdings, Inc. faces significant constraints due to strict covenants and provisions within its Loan Agreements, including the Structural Debt Facility and Siena Revolver. These stipulations not only limit Grove’s operational flexibility by restricting asset sales and additional borrowing, but also pose risks of default with severe repercussions if breached. Moreover, the company’s obligation to issue shares if the Structural Debt Facility isn’t refinanced by July 2025, alongside the commencement of principal payments, may lead to stockholder dilution and strain on financial health should cash flow prove inadequate for debt service.
The average GROV stock price target is $3.00, implying 58.73% upside potential.
To learn more about Grove Collaborative Holdings, Inc.’s risk factors, click here.
