Smart Eye - Redeye Research Note7 Oct 2024 14:38
Smart Eye has secured a total credit facility of SEK150m, increasing its unused credit limit from SEK82m to SEK232m. Including the company's cash position as of Q2'24, Smart Eye has a total of SEK342m in available cash.
Regarding the interest rate, Smart Eye states that it is "on market terms" with an "independent credit market actor group." If it had been with a ‘traditional bank’ with a, say, 5-7% interest rate, we assume the bank’s name would have been named and that the interest rate would have been specified somewhat more in detail. Hence, we believe the interest rate, if used, is at least 10%.
Regarding the timing for breakeven, nothing was mentioned in the press release. However, Smart Eye stated that "global new car sales are currently not meeting the expected levels", likely implying that the company's own estimate of breakeven is pushed forward by at least one quarter. That would imply that the company's own breakeven estimate would be moved from Q1/Q2 2025 to Q2/Q3 2025.
As of now, Redeye maintains its estimates and fair value range.