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  "documentTitle": "Magnite, Inc. (MGNI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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  "pageNumber": 32,
  "pageCount": 54,
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  "notes": "The slide uses a callout box to highlight a specific risk factor and includes excerpts from credit agreements to demonstrate the shift from EBITDA-based covenants to cash burn-based covenants.",
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      "kind": "callout",
      "text": "“The economic health of our current and prospective buyers also impacts the collectability of our accounts receivable. Although our liquidity has not been significantly affected by the effects of COVID-19 to date, any downturn in economic conditions in the future may severely impact our liquidity as we may need additional time to collect from buyers, which will impact our ability to pay sellers”",
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      "kind": "paragraph",
      "text": "There is evidence to suggest that either Magnite is extending exceptionally long credit terms to buyers to enhance its recent results, or is chasing new customers of lower credit quality. The recent Q3 2020 10-Q includes a new warning statement about future strains on liquidity and buyers needing more time to pay. In addition, Spruce Point observes a very unusual, and extremely bearish, changes made to its recent credit agreement with Silicon Valley Bank. The new agreement includes CTV as a borrow and the definitions of the financial covenants have become more restrictive. Notably, “Adjusted EBITDA” has been replaced with “Maximum Cash Burn”. In our opinion, if Magnite were on the cusp of inflecting its cash flow positive, its lenders would not have required this condition.",
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      "text": "Source: Amended SVB Agreement / 2nd Amended SVB Agreement",
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      "text": "Maximum Cash Burn table showing periods and corresponding cash burn amounts.",
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      "kind": "title",
      "text": "New Risk Factor Language And Stricter Covenants A Bearish Signal....",
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      "arcName": "Overcoming the Monster",
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