Acura Pharmaceuticals receives additional loans from AD Pharma, total debt rises to $8.7 million

Published 04/09/2025, 13:34
Acura Pharmaceuticals receives additional loans from AD Pharma, total debt rises to $8.7 million

Acura Pharmaceuticals, Inc. (OTC:ACUR), which has seen its stock price decline by 92% over the past year according to InvestingPro data, reported Thursday that it has received three separate loans of $100,000 each from Abuse Deterrent Pharma, LLC (AD Pharma) on August 1, August 15, and September 3. According to a press release statement and a filing with the Securities and Exchange Commission, these new loans, combined with previous borrowings, bring the principal balance under the company’s secured promissory note with AD Pharma to $8,694,279 as of September 3. Accrued interest on the note amounts to approximately $795,000.

The note carries an interest rate of 5.25%. If any payment is not made when due, overdue amounts will accrue interest at 7.5% per annum until paid in full. Events of default under the note include bankruptcy, failure to pay principal or interest when due for more than five days, or if Acura Pharmaceuticals is unable to pay its debts as they become due.

The company stated that the funding from AD Pharma is intended to support day-to-day operational activities. With a current market capitalization of just $0.02 million and a weak financial health score according to InvestingPro analysis, Acura Pharmaceuticals noted in the filing that there is no assurance it will be successful in securing additional financing. InvestingPro subscribers have access to 8 additional key financial metrics and insights about the company’s financial condition. The company indicated that, absent further funding by mid-September 2025, it may be required to scale back operations, furlough or lay off employees, or terminate operations and seek bankruptcy protection.

As of August 31, AD Pharma directly owns approximately 65% of Acura Pharmaceuticals’ outstanding common stock. This ownership does not include a warrant held by AD Pharma to purchase an additional 10 million shares. Mr. Schutte, the managing partner and investor in AD Pharma, directly owns about 13% of Acura’s outstanding common stock.

The information in this article is based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, Acura Pharmaceuticals has secured two new loans totaling $200,000 from Abuse Deterrent Pharma, LLC. These loans were received on June 3 and June 20, adding to the company’s existing borrowings. As of June 20, the total principal balance under Acura Pharmaceuticals’ Amended Consolidated and Restated Secured Promissory Note, dated November 10, 2022, has reached $8,194,279. The accrued interest on this debt is approximately $721,000. The loans carry an annual interest rate of 5.25%, with a higher rate of 7.5% applied to overdue payments. Potential default events include bankruptcy or failure to make timely payments of interest or principal. These developments reflect Acura Pharmaceuticals’ ongoing financial activities and obligations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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