Castle Biosciences (CSTL) has disclosed a new risk, in the Debt & Financing category.
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Castle Biosciences faces significant operational and financial constraints due to the covenants associated with its 2024 Loan and Security Agreement. The agreement, which includes both affirmative and negative covenants, limits the company’s ability to transfer collateral, incur additional debt, or engage in mergers and acquisitions, among other activities. These restrictions could hinder Castle Biosciences’ pursuit of strategic business opportunities and expose it to heightened risk in the event of a default, potentially leading to financial instability and a decline in stock value. The company’s future debt financing efforts may impose further restrictions, compounding these challenges and impacting its operational flexibility.
The average CSTL stock price target is $39.83, implying 27.87% upside potential.
To learn more about Castle Biosciences’ risk factors, click here.
