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MBII: Marrone Bio Innovations adds to credit facility based on short term assets. Our estimates do not include any financials from the recent acquisitions.

01/10/2020

By Ian Gilson, PhD, CFA

NASDAQ:MBII

READ THE FULL MBII RESEARCH REPORT

Marrone Bio Innovations (NASDAQ:MBII) has increased its line of credit based on accounts receivable from $7 million to $20 million and has added a line of credit backed by its inventory. Both additional funds will be made available from LSQ Funding Group [https://lsq.com].

Small high growth companies frequently our pace their cash as they try to balance cash/accounts receivable/inventories/accounts payable with operating expenses. This is especially difficult when revenue is highly seasonal and costs occur in different accounting periods than accounts receivable are paid.

Lending organizations have a lot more access to the financials than do analysts so it is encouraging that LSQ Funding has such confidence in Marrone Bio Innovations to guarantee access to $18 million of additional funding.

Our estimates do not include any data from the recent acquisitions since no current or historical data is available at this time. When the impact of the acquisitions becomes available we will adjust our forecasts accordingly.

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