What are the immediate implications of the covenant waiver on Vow ASA's liquidity and refinancing options?

The waiver temporarily lifts the breach of Vow ASA’s debt covenants, meaning the company will not be forced into an event‑of‑default under its DNB loan facilities and can continue to draw on the existing lines of credit. In the short run this injects a modest but critical liquidity buffer that should cover operating cash‑flow needs and any rollover of short‑term debt that would otherwise have been halted. However, the waiver is typically conditional and limited in time (often 30‑90 days), so it does not solve the underlying financing gap created by the restated Q1 EBITDA and the upcoming one‑off charge. Management will still need to renegotiate the covenant terms or secure new long‑term funding, and any delay or failure to do so will quickly re‑ignite default risk.

From a market perspective the waiver has already capped the immediate downside – the share price, which was trading near a recent support zone around NOK 6.5, steadied after the announcement and saw a modest rebound on lower volume. Nonetheless, sentiment remains bearish (‑60) and the technical picture shows a descending channel with the 20‑day EMA still above price, indicating continued downward pressure. Traders should treat the stock as a “wait‑and‑see” play: consider a short‑term defensive long or a tight‑stop short position, but only if they are comfortable with the risk that a successful refinancing or a more favorable covenant amendment could trigger a short‑term rally. The key trigger levels are a break above NOK 7.00 (signalling a possible covenant renegotiation win) or a slip below NOK 6.0 (suggesting liquidity strain re‑emerges). Keep exposure limited until Vow provides a concrete refinancing timetable or updates on the waiver’s expiry.