NKGen Biotech, Inc. has entered into a convertible loan agreement with AlpineBrook Capital GP I Limited, securing a term loan of up to $4.5 million, with $4.18 million cash advanced before closing.
The loan, bearing an annual interest rate of 12%, was established on December 31, 2024, and is set to mature on December 31, 2025. The California-based biotech company, specializing in biological products, also issued a convertible promissory note and warrants as part of the agreement.
The note allows the lender to convert the outstanding principal and accrued interest into NKGen Biotech's common stock at a conversion price of $0.25 per share, subject to certain adjustments and limitations. Additionally, as part of the loan terms, 1.5 million shares of common stock and a warrant for another 1.5 million shares were issued to the lender. The warrant carries an exercise price of $0.25 per share and is valid for five years.
In compliance with Nasdaq Listing Rule 5635(d), NKGen Biotech will seek shareholder approval for the issuance of common stock in excess of the Exchange Cap, which limits the number of shares that can be issued without prior shareholder consent. Until such approval is obtained, the company has agreed not to issue shares beyond this limit.
The financial arrangement also stipulates that any subsidiaries formed or acquired by NKGen Biotech during the term of the loan must guarantee or become liable for the obligations under the loan agreement.
The information provided here is based on a press release statement and the 8-K filing with the Securities and Exchange Commission.
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