Volta Will Soon Violate Debt Covenants, Issues Going Concern Warning

EV charging firm will need to avoid significant increases in interest expense or default.

August 13, 2022

After burning $74 million in operating activities in the latest quarter, Volta Inc. (VLTA), a builder of electric vehicle (EV) charging stations, is warning it has substantial doubt about its ability to continue as a going concern without additional funding. The company’s $32.7 million outstanding term loan requires a minimum cash balance and contains average revenue covenants Volta says may soon be violated:

“If the Company does not raise additional capital it is unlikely the financial requirements will be met in future periods and the lenders will have the right to exercise remedies, including an increase in the interest rate by 3.0% per annum, and an option to require repayment of the loan in the event of default.”

Related: EVGO, CHPT

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