The premium marketing technology company, engage:BDR Limited (ASX:EN1) has been garnering market traction off late due to its recording breaking revenues, onboarding new programmatic client integrations and publishers, a new promising set of its 2020 strategic plan and a recently formed Advisory Council.
Unquestionably, these updates have made EN1 one of the hottest communication service sector stock in the Australian stock market. Taking the trajectory ahead, the Company added another feather in its cap recently after it intimated that it has received the approval of a recent application for the U.S. CARES Act stimulus program, specifically the PPP (paycheck protection program).
Let’s deep dive into this US SBA Stimulus Funds Update-
EN1’s Paycheck Protection Program Approval
The Company had applied for the U.S. CARES Act stimulus program, specifically the PPP (paycheck protection program) and received approval for the same on 15 April 2020 from the US Small Business Administration (SBA).
The first disbursement will be $ 675k, and is 100% forgivable, which means no repayment by the Company as this will be used entirely for the payroll of US employees. The disbursement is likely to occur within 48 hours.
The Management also anticipates that the ‘stay at place’ orders pertaining to the COVID 19 regulations for the majority of the U.S. can possibly extend beyond 15 May 2020. Consequently, the PPP funding is likely to increase within the coming weeks.
Other Funding Prospects
In light of significant interest rate reductions, the Company’s 2019 audited financial results and the US government’s $ 2.2 trillion stimulus program, EN1’s management has applied for several new financing opportunities, none of which involve equity.
EN1 has applied for the U.S. SBA disaster relief funding as well. The Management expects feedback on this application to arrive within the next week. Besides this, the Company remains in the last stages of the application process for an $8 million worth term loan (3-4% APR), with a top-tier Australian bank. Feedback and application submission for the same is also expected to arrive within the next week.
EN1’s Management has reportedly filed a business interruption claim with the Company’s business income insurance policy. EN1 remains in the process of assessing impact and is working with the insurer to quantify the amount of this claim. It expects to receive a feedback within the next week.
A market-leading, publicly traded marketing technology company, EN1 is operational in the US, Australia and Ukraine. The Company has developed proprietary AI and machine learning technologies which efficiently automates and maximises the transaction of digital video, native and display advertising and influencer marketing for advertisers, along with their agencies and the app publishers who display these advertisements.
EN1’s Key Facts (Source: Investor Presentation)
The Company aims to become Asia’s largest programmatic platform in digital video, display advertising and influencer marketing and has recently entered into new integration agreements with Asia’s largest programmatic advertising companies continuing the rapid expansion of its programmatic advertising business into the fast-growing Chinese and Indian markets.
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