Loan & DebtMay 1, 2026, 04:22 PM
Borealis Foods Secures $17M Loan, $33.3M Debt Conversion, Board Changes
AI Summary
Borealis Foods Inc. subsidiaries secured a new term loan of up to $17.0 million from Oxus Capital PTE Ltd., a significant shareholder, to repay $16.2 million of existing debt and provide $425,000 in working capital. Concurrently, the company entered a Conversion Agreement with Oxus, its CEO, and Chairman, to convert approximately $33.3 million of existing shareholder debt into common shares if a $70.0 million equity financing is not secured by July 1, 2026. The Credit Agreement also mandates a reconstitution of the Board of Directors by May 11, 2026, replacing two members with lender-approved individuals, indicating increased lender influence.
Key Highlights
- Borealis Foods subsidiaries secured a new term loan of up to $17.0 million from Oxus Capital PTE Ltd.
- Loan proceeds repaid $16.2 million of existing debt and provided $425,000 for the company.
- Approximately $33.3 million in shareholder debt (principal + interest) is subject to conversion into common shares.
- Debt conversion is automatic if $70.0 million in equity financing is not raised by July 1, 2026.
- The term loan matures April 27, 2031, with a 12% annual interest rate.
- The Board of Directors is required to be reconstituted by May 11, 2026, replacing two members.
- Oxus has an option to convert approximately $2.0 million of Year 1 interest into common shares.