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Channel Therapeutics Corp (NYSE American: CHRO), a biotech firm specializing in biological products with a market capitalization of $12.36 million, has entered into an unsecured promissory note agreement for $325,000 with 3i (LON:III), L.P., as disclosed in a recent SEC filing. The note, issued on February 25, 2025, was purchased by the Delaware limited partnership for $250,000.
The note carries an annual interest rate of 6.0% and allows Channel Therapeutics the option to prepay without penalty, with two days’ advance written notice to the holder. The principal, alongside any accrued interest and other payable amounts, is due on the earliest of May 25, 2025, the occurrence of a Corporate Event as defined in the note, or upon the declaration of an Event of Default as specified in the agreement. According to InvestingPro data, the company currently operates with a moderate debt level and maintains a current ratio of 0.6, indicating potential liquidity challenges.
This financial move by Channel Therapeutics, formerly known as Chromocell Therapeutics Corp, represents a creation of a direct financial obligation. The full terms of the note are detailed in Exhibit 10.1 of the 8-K filing.
The transaction provides the New Jersey-based Channel Therapeutics with additional capital, potentially for advancing its research and development initiatives within the biotechnology sector. The company, which operates under the industrial classification of biological products, has not disclosed specific plans for the use of the funds.
This news is based on the recent 8-K filing by Channel Therapeutics Corporation with the Securities and Exchange Commission.
In other recent news, Channel Therapeutics Corporation has announced positive results from pre-clinical trials of its NaV1.7 inhibitor formulations for acute pain. The company reported that these formulations demonstrated significant improvements over the standard of care, bupivacaine, in both efficacy and duration, with a depot effect lasting more than four days. This development positions Channel Therapeutics as a potential contender in the global post-operative pain market, where current therapies like bupivacaine’s Exparel generated approximately $538 million in 2023. Channel Therapeutics’ Chief Medical (TASE:BLWV) Officer, Dr. Eric Lang, suggested that NaV1.7 inhibitors could be viable alternatives for managing acute and postoperative pain without impacting mobility.
The company is also advancing its three-pronged strategy for NaV1.7 inhibition, which includes formulations for neuropathic pain, eye pain, and post-surgical nerve blocks. CEO Frank Knuettel II emphasized the promising data from ongoing programs, including in vivo nerve block results. The company anticipates key studies and data readouts in 2025, which could further substantiate its clinical development plan. Channel Therapeutics remains focused on developing non-addictive therapeutics, with further studies on its eye drops expected to yield results by late January 2025. These developments reflect Channel’s commitment to offering alternatives to opioid treatments, although the company acknowledges the inherent risks and uncertainties in its forward-looking statements.
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