ATER - Aterian - Debt Covenant Breaches And Additional Capital Needs Likely To Result In Material Dilution

• Controversial e-commerce company discloses additional debt covenant breaches resulting in an acceleration of a substantial part of its debt with hedge fund High Trail Investments ("High Trail").
• Agreement to repay the debt including a 15% default premium in discounted new shares heavily incentivizes High Trail to short the company's common stock.
• Company needs to raise additional capital to cover ongoing operating losses and continue its roll-up strategy.
• With new debt financing likely not available at this time, investors need to prepare for a near-term equity offering including warrant sweeteners.
• A short position could yield decent results but sky-high borrowing rates are likely to keep even speculative investors sidelined at this point.

For further details see: