Loan & DebtJun 3, 2026, 06:01 AM
Nuo Therapeutics Increases Loan to $2.0M for Working Capital
AI Summary
Nuo Therapeutics, Inc. entered into an Amended and Restated Loan and Security Agreement, increasing its aggregate loan commitment to $2.0 million. The company received $675,000 in interim funding, with an additional $325,000 available by September 30, 2026, for general working capital. The loan, which includes participation from board members and significant shareholders, carries an annual interest rate of 12% and is secured by all company assets. Interest is payable in warrants, and principal repayment begins in March 2027.
Key Highlights
- Nuo Therapeutics entered an Amended and Restated Loan and Security Agreement for up to $2.0 million.
- The aggregate commitment increased by $400,000 from the initial agreement.
- Initial Funding was $1,000,000, Interim Funding was $675,000, and a Second Funding of $325,000 is available.
- Funds are intended for general working capital purposes.
- The loan bears an annual interest rate of 12%, up from 10% for initial notes.
- Interest is payable in warrants, not cash, at the December 31, 2028 maturity date.
- Principal repayment begins March 31, 2027, in equal quarterly installments.
- The loan is secured by a lien on all of the Company's assets, including intellectual property.
- Board member Scott M. Pittman committed $400,000 and Paul Anthony Jacobs committed $700,000 to the loan.
Price Impact
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