On July 5, 2022 Outlook Therapeutics, Inc. (Nasdaq: OTLK), a pre-commercial biopharmaceutical company working to develop and launch the first FDA-approved ophthalmic formulation of bevacizumab for use in retinal indications, reported the full cash pre-payment of its unsecured convertible promissory note dated November 4, 2020, as amended November 16, 2021 (the "Note") (Press release, Outlook Therapeutics, JUL 5, 2022, https://ir.outlooktherapeutics.com/news-releases/news-release-details/outlook-therapeutics-announces-full-cash-pre-payment-convertible [SID1234616473]). All obligations under the Note have been repaid in cash and satisfied.
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"The company requires a good financial position to support the potential FDA approval and subsequent launch of ONS-5010/ LYTENAVA (bevacizumab-vikg)," commented Lawrence A. Kenyon, Chief Financial Officer of Outlook Therapeutics. "We are also mindful of current financial market conditions and the potential for dilution to our stockholders. We are pleased to be in a position to fully repay this unsecured convertible promissory note to prevent the dilution associated with redemption of the Note for common stock at a 25% discount to market price that could have begun on July 1, 2022."
On November 5, 2020, the Company received $10,000,000 in net proceeds from the Note with face amount of $10,220,000, which was amended in November 2021 and became convertible. On November 16, 2021, the Company entered into a note amendment which, among other things, (i) extended the maturity date to January 1, 2023, (ii) increased the interest rate from 7.5% per annum to 10% per annum beginning on January 1, 2022, and (iii) provided for the lender’s right to redeem some or all of the outstanding balance of the note for shares of the Company’s common stock beginning July 1, 2022, subject to certain limitations.