Charge Enterprises rating placed under review at H.C. Wainwright

H.C. Wainwright analyst Amit Dayal placed the firm’s rating on Charge Enterprises under review after the company received a letter from Arena Investors alleging that Charge’s guarantee of the obligations of its wholly owned subsidiaries, Nextridge, and ANS Advanced Network Services under a loan agreement with Pioneer Bank entered on October 21, 2022 was in violation of certain restrictions per various agreements with Arena signed during 2020 and 2021. Though these developments should not impact the daily operations of the company’s subsidiaries in the near term, it is not clear how the various stakeholders, including investors, customers, and business partners, will react to this development, the analyst tells investors in a research note.