- Discussing last week's mutual termination of the company's reverse merger agreement with Triller.
- SeaChange will neither be entitled to the $4 million termination fee specified in the merger agreement nor reimbursed for costs incurred in conjunction with the transaction.
- Going forward, SeaChange will be back on its own in an increasingly difficult market for the company's core video and advertising products.
- While recent Q1 results showed some top and bottom line progress on a year-over-year basis, the company will likely be challenged to achieve sustainable growth and positive free cash flow going forward.
- Remaining liquidity should be sufficient for up to another three years, so still plenty of time for management to engineer a sustainable turnaround. I am reiterating my "neutral" rating on the shares for now.
For further details see:
SeaChange: Tough Times Ahead After Termination Of Triller Reverse Merger Agreement