ALJ Regional Holdings Inc. (NASDAQ:ALJJ) Stock Sees Buying Interest At Lower Level: What Next?

ALJ Regional Holdings Inc. (NASDAQ:ALJJ) jumped 14% no news. The company recently announced the completion of the replacement of its current term loan and amendment of the current revolving credit facility. ALJ amended the term loan significantly, reducing quarterly term loan principal payments by 54% or $4.4 million. Also, the new term loan permits payment of interest in cash on the outstanding convertible debt.

The average interest rate in the amended loan term has been reduced by almost 50% but availably is still unchanged at around $32.5 million. CEO Jess Ravich stated that they are delighted that its improving financial results have allowed it to refinance the capital structure, offering improved cash flow.

The company announced financial results for its first quarter ended December 31, 2020. The company posted net revenue of around $119.8 million in the quarter, a 32.5% increase compared to a year ago. The increase was due to contact implementation and new unemployment contracts at Faneuil and component sales increase related to Phoenix trade. So, ALJI is worth watching.

Market Reaction:

On Monday, ALJJ stock went up 13.85% at $1.48 with more than 609k shares, compared to its average volume of 96k shares. The stock has moved within a range of $1.2801 – 1.5300 after opening the trade at $1.29.