Shares SMG Industries (OTCMKTS:SMGI) continues to move higher on Friday, extending its weekly gains to 43%.
Market Reaction
On Friday, SMGI stock soared 23% to close at $0.2580 with more than 44K shares, compared to its average volume of 12k shares. The stock has moved within a range of $0.2307 – 0.2790 after opening the trade at $0.27.
Announces a $12.7 Million Refinance of its Senior Secured Term Loan
Growth-oriented transportation services firm focusing on infrastructure logistics market, SMG Industries (OTCMKTS:SMGI), on November 5, 2021, announced refinancing of higher-cost senior secured equipment debt done in February 2020 related to the acquisition of 5J Transportation Group.
The first tranche was $6.40 million, which was financed on September 7, 2021, as confirmed in its Current Report on Form 8-K while the second and final tranche funded $6.34 million on November 1, 2021.
The firm will be paying a monthly interest through October 1, 2022, and both principal and interest after that through September 7, 2026. SMG Industries may also prepay the note early without any penalty. The company confirmed on funds coming in from existing stakeholders including active family offices.
Allen R. Parrott, SMG’s CFO said that the refinance of its senior secured term debt will save the firm about $324,000 per month in cash flow during the first year itself.
Parrott added that the firm will have less expensive term debt with better terms and can flexibly work towards optimizing equipment fleet including the addition of more bridge beam trailers with the infrastructure logistics market showing strength.
SMG Industries is anticipating issuing a Current Report on Form 8-K later in the week on financing completion.
Key Quote
Mr. Allen R. Parrott, SMG’s CFO, stated, “The refinance of our senior secured term debt will save the Company approximately $324,000 per month in cash flow during the first year alone. We are pleased to have this less expensive term debt with more favorable terms. The Company can now more flexibly work to optimize its equipment fleet including possibly adding more bridge beam trailers as the infrastructure logistics market appears to be building strength.”
Traders Review
SMGI stock is trading above the 20-Day and 50-Day Moving averages of $0.20 and $0.19 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.19. The stock is up 60% over the past week.
