Castle Biosciences (CSTL) has disclosed a new risk, in the Debt & Financing category.
Castle Biosciences faces considerable business risk due to the restrictive covenants of its 2024 Loan and Security Agreement (LSA) with its Lender. The terms of the agreement, which include limitations on actions such as incurring further debt and engaging in mergers or acquisitions, could severely limit the company’s operational and financial agility. Furthermore, the possibility of the Lender declaring a default based on a material adverse event could lead to immediate repayment demands, potentially crippling the company’s finances. Should additional debt be procured, it may impose even tighter constraints, further jeopardizing Castle Biosciences’ strategic and financial maneuverability.
The average CSTL stock price target is $33.83, implying 39.05% upside potential.
To learn more about Castle Biosciences’ risk factors, click here.
