The Loan agreement does not give a true indication of whether OCZ will file on April 8th or before because the 5 million is only contingent on current SEC filings and revenue for two consecutive quarters so if revenue is below the threshold why would you worry about that part of the loan agreement and the first 6 month is only interest only if OCZ prefers so that once again makes things a little vague along with the demands of raising more equity by May. I hope they do file on time just to be seen a trust worthy and transparent company because to be honest if you can clear up a simple 65 to 110 million dollar reconciliation then you are hiding something or just playing stall tactics for some reason.
The Loan Agreement provides for an initial term loan advance of $10 million, which closed on March 11, 2013, and an additional term loan advance of up to $5 million, which is contingent upon the Company being current in its SEC filings and achieving certain revenue levels for two consecutive quarters. During the first year, the term loan will bear interest in cash at an annual interest rate equal to the greater of 12.50% or prime plus 8.75%. After the first year, if no event of default exists on the first anniversary of the closing of the Loan Agreement, the term loan will bear interest in cash at an annual rate equal to the greater of 10% or prime plus 6.25%. In addition to cash interest, the term loan will accrue payment in kind (“PIK”) interest at a PIK interest rate of 3.0% per year. The Loan Agreement provides for interest-only payments on the term loan for six months and repayment of the aggregate outstanding principal balance of the term loan in monthly installments starting on November 1, 2013 and continuing through April 1, 2016.
I think a May 1st raise would require that they file on time. Can you even raise money legally without your SEC filings in place? It takes a minimum of 90 days to get a decent round together, so they've got to have this in the bag already.