Despite the challenging financial position, the stock has shown resilience with a 9.2% year-to-date return. Despite the challenging financial position, the stock has shown resilience with a 9.2% year-to-date return. This report is based on a press release statement. For comprehensive financial analysis and real-time updates on KRBP's performance metrics, consider accessing InvestingPro's extensive database of financial indicators and expert insights. For comprehensive financial analysis and real-time updates on KRBP's performance metrics, consider accessing InvestingPro's extensive database of financial indicators and expert insights.
The investor has the option to convert the note into common stock shares at a 10% discount to the 5-day volume-weighted average price (VWAP) starting January 31, 2025, subject to a 19.99% beneficial ownership limitation. The conversion rate is based on the average price preceding the conversion notice, as detailed in the note agreement.
This financial obligation is secured by the company's assets, including equipment and intellectual property, with certain exclusions. The note is senior to all subordinated debt and equity securities of Kiromic Biopharma as of the issuance date. The company retains the right to incur additional secured or unsecured debt, though InvestingPro data indicates the company's financial health score is currently rated as WEAK, with 14 additional key insights available to subscribers.
Following this transaction, the investor holds various securities in Kiromic Biopharma, including $13.2 million in outstanding promissory notes and shares in the company's Series C, D, and E Convertible Voting Preferred Stock.
The issuance of the convertible note was conducted under the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933. This move by Kiromic Biopharma highlights its efforts to secure funding through financial instruments that offer potential equity conversion to investors.
In other recent news, Kiromic BioPharma has made significant strides in both financial restructuring and clinical development. The biotechnology firm finalized an Exchange Agreement, converting $2.4 million of its 25% Senior Secured Convertible Promissory Notes into 3,000 shares of Series E Convertible Voting Preferred Stock. This strategic move aims to strengthen Kiromic BioPharma's balance sheet by reducing debt.
Furthermore, the company's lung cancer treatment, Deltacel™, received Fast Track designation by the U.S. Food and Drug Administration (FDA). This development is intended to expedite the review of the therapy for patients with metastatic non-small cell lung cancer who have not responded to standard treatments. The treatment is currently undergoing a Phase 1 clinical trial.
In addition to these developments, Kiromic BioPharma secured $2M in convertible note financing, bolstering its capital for operations. The company also reported promising results from its Deltacel Phase 1 clinical trial, with one patient experiencing a 6.6% reduction in tumor size two months post-treatment.
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