Fubotv Inc. (FUBO) has disclosed a new risk, in the Debt & Financing category.
Fubotv Inc. faces a significant financial challenge with the conditional conversion feature on its 2029 Secured Convertible Notes. Triggering this option grants note holders the right to convert their debt into company stock during specified periods, potentially demanding Fubotv to satisfy conversion obligations with cash payments, thereby straining its liquidity. Moreover, not opting to convert could still harm Fubotv’s financial statements; accounting rules might force the reclassification of this debt from long-term to current liability, sharply diminishing their reported net working capital and potentially harming investor perceptions.
The average FUBO stock price target is $3.38, implying 94.25% upside potential.
To learn more about Fubotv Inc.’s risk factors, click here.