Westell Technologies Inc. (OTC:CAPI) Stock In Focus After Renewal of $5 Million Line of Credit

Investors need to keep a close eye on the latest news stories if they are to make informed decisions, and this week Westell Technologies Inc. (OTC:CAPI) is one of the companies that may require a degree of attention. On December 19, the company announced that it had gone into an amendment with regards to its credit agreement worth $5 million with St. Charles Bank & Trust Company NA.

The company, involved in providing high-performance wireless infrastructure technologies, had announced that the amendment would go into effect on December 15, 2023. As per the terms of the amendment, the maturity date of the concerned credit facility was extended to December 15, 2024. On top of that, the borrower would not need to maintain a minimum fixed charge coverage ratio that had to be measured half-yearly following the amendment. Westell Technologies keeps the revolving line of credit as a source of cheaper liquidity and for having more flexibility for providing support related to working capital needs.

On January 4, 2023, the company came into focus after it announced that it had changed its auditor following the appointment of Baker Tilly as its independent registered public accounting firm. The appointment went into effect on January 3, 2023. Baker Tilly had been asked to complete an independent audit of Westell Technologies’ books for the fiscal year that ended on March 31, 2023.

The company had noted at the time that it had appointed Baker Tilly after its Board of Directors and Audit Committee approved the change following a tender process involving PCOAB-registered auditing firms. The tender process was competitive in nature and had been designed in such a way so as to ensure that Westell Technologies managed to get the services at a competitive cost from the auditor.