Voyager Digital Ltd VYGVF shares are falling Wednesday after the company revealed significant exposure to Three Arrows Capital (3AC) and announced a loan agreement with Sam Bankman-Fried’s Alameda.
Voyager said it may issue a notice of default to 3AC for failure to repay its loan. Voyager’s exposure to 3AC consists of 15,250 Bitcoin BTC / USD and $ 350 million USDC.
The company said it made an initial request for a repayment of $ 25 million USDC by June 24, and subsequently requested repayment of all that it’s owed by June 27.
“Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default,” Voyager said.
Voyager intends to pursue recovery from 3AC and is in discussions with the company’s advisors regarding the legal remedies available.
The company also entered into a definitive agreement with Alameda (related to the previously disclosed credit facility) for a $ 200 million cash and USDC revolver, as well as a 15,000 Bitcoin revolver.
Voyager said the proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed.
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VYGVF Price Action: Voyager is making new 52-week lows on Wednesday.
The stock was down 51.2% at 60 cents at press time, according to data from Benzinga Pro.
Photo: Pete Linforth from Pixabay.