Beyond Air Secures $11.5 Million Loan in Recent Agreement

Beyond Air, Inc. (NASDAQ:XAIR) recently finalized a significant financial agreement as disclosed in a Form 8-K filing submitted to the Securities and Exchange Commission. The company, based in Delaware, entered into a Loan and Security Agreement on November 1, 2024. This agreement follows a previously approved binding term sheet for a secured loan with specific lenders, including the company’s Chief Executive Officer, Steven Lisi, and director Robert Carey.

The Loan and Security Agreement outlines a $11.5 million loan facility for Beyond Air. The loan carries an annual interest rate of 15%, with 3% payable in cash and 12% payable in kind through June 30, 2026. Following this period, the entire interest amount will be payable in cash. The loan, along with any accrued interest, is due for full repayment on October 4, 2034.

The agreement further stipulates a unique repayment structure starting from October 1, 2026. If the Royalty Interest, which stands at 8% of net sales for the previous fiscal quarter, exceeds the accrued interest for the same period, the company will be required to make a cash repayment. Otherwise, a portion of the interest payment will be paid in cash at a rate of 3% per annum and in kind at a rate of 12% per annum to cover any Quarterly Interest Shortfall.

To secure this loan, Beyond Air has offered substantially all of its assets as collateral. The agreement includes standard events of default and allows for the acceleration of outstanding amounts under the loan upon particular conditions.

Additionally, in connection with the loan agreement, the company issued warrants to both Steven Lisi and Robert Carey. These warrants allow them to purchase up to 3,295,544 and 9,886,633 shares of common stock, respectively, at an exercise price of $0.3793 per share. These warrants are exercisable for a period of five years following shareholder approval of an increase in the company’s authorized common stock.

The warrants and underlying shares were not registered under the Securities Act of 1933 and were offered under an exemption from registration requirements. Details regarding the warrants are available in the Form 8-K filing submitted to the SEC.

This recent financial agreement provides Beyond Air with additional capital resources and further solidifies the company’s financial position moving forward. Interested parties are encouraged to review the complete Form 8-K filing for a comprehensive understanding of the terms and conditions of the agreement.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Beyond Air’s 8K filing here.

About Beyond Air

Beyond Air, Inc operates as a commercial-stage medical device and biopharmaceutical company in the United States. The company engages in the development of LungFit platform, a nitric oxide generator and delivery system. It offers LungFit PH for the treatment of persistent pulmonary hypertension of the newborn.