BioXcel Therapeutics, Inc. filed a Form 8-K with the Securities and Exchange Commission on November 21, 2024, detailing the Fifth Amendment to its Credit Agreement and Guaranty. The amendment, which was entered into on the same date, modifies the existing Credit Agreement and Guaranty dated April 19, 2022.
Under the Fifth Amendment, significant changes were made to the agreement by the Company, certain subsidiaries, lenders, and Oaktree Fund Administration LLC. Some key amendments include the waiver of the “going concern” qualification, a permanent waiver of the minimum revenue covenant, and waivers related to previous capital raise requirements.
Furthermore, adjustments were made to the interest rates on loans, with a change from a floating rate to a fixed rate. The Company also committed to certain expenditure and compensation restrictions, as outlined in the amendment.
In conjunction with the Fifth Amendment, the Company’s wholly owned subsidiaries, OnkosXcel Therapeutics, LLC and OnkosXcel Employee Holdings, LLC, provided security interests in their assets to support the obligations under the Credit Agreement.
The Company also disclosed the appointment of David Mack to its Board of Directors on November 21, 2024. Mr. Mack brings over 25 years of experience in various roles, including as a lawyer, director, and investor, and has served on other boards in the past. The Board believes that Mr. Mack’s expertise will be valuable as the Company navigates its strategic growth and financial affairs.
Additionally, the Company entered into agreements related to the issuance and amendment of warrants to purchase its common stock, providing rights to the lenders involved.
The 8-K filing further included information about the intellectual property updates, including the issuance of a new patent and its listing in the FDA Orange Book, enhancing BioXcel Therapeutics’ pharmaceutical portfolio.
The Company also announced its plans to make a one-time amortization payment, implement new covenants, and modify financial agreements, all of which are detailed in the filed reports.
Investors and stakeholders can refer to the complete text of the Fifth Amendment and associated agreements, as well as detailed financial statements and exhibits, in the official filing on the SEC’s website.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read BioXcel Therapeutics’s 8K filing here.
About BioXcel Therapeutics
BioXcel Therapeutics, Inc, a commercial-stage biopharmaceutical company, engages in utilizing artificial intelligence approaches to develop transformative medicines in neuroscience and immuno-oncology. The company's drug re-innovation approach leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices.
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