what does: "reduces the tangible net worth covenant" mean in the
following? why would the stock pop over 10% on that?
http://biz.yahoo.com/e/080401/sofo8-k.html
Form 8-K for SONIC FOUNDRY INC
1-Apr-2008
Creation of a Direct Financial Obligation or an Obligation under an Off-
Balance
Item 2.03 Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant
On March 31, 2008, Sonic Foundry, Inc., and its wholly-owned subsidiary,
Sonic Foundry Media Systems, Inc. ("SFMS") entered into a letter
agreement dated March 25, 2008 (the "Agreement") with Silicon Valley
Bank, the primary banking subsidiary of Silicon Valley Bancshares. The
Agreement reduces the tangible net worth covenant as of March 31, 2008
from $5,500,000 to $2,800,000, plus, in each case, fifty percent (50%) of
the Registrant's Net Income and new equity or Subordinated Debt (as
defined).
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