- Discussing new focus on the company's so-called Energy-as-a-Service ("EaaS") business which will continue to pressure cash flows.
- Company takes additional measures to reduce expenses with a stated goal of reaching consistent quarterly positive adjusted EBITDA.
- Covenants governing $51 million in notes held by Goldman Sachs require the company to reduce adjusted EBITDA losses going forward.
- At the current rate of cash usage, the company will have to raise additional capital in the second half of this year.
- With limited options for raising additional funds and a major debt maturity approaching next year, it is difficult to remain optimistic on the company's prospects. Investors should avoid the shares or consider selling existing positions.
For further details see:
Capstone Green Energy Announces New Focus On Microturbine Rentals - Avoid