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Eyenovia, Inc. (NASDAQ:EYEN), a pharmaceutical company currently valued at $6.91 million and trading below its InvestingPro Fair Value, has entered into a third amendment to its loan and security agreement with Avenue Capital Management II, L.P., as administrative and collateral agent, and Avenue Venture Opportunities Fund, L.P., and Avenue Venture Opportunities Fund II, L.P., as lenders. This amendment, dated May 30, 2025, modifies the original agreement established on November 22, 2022.
The original loan agreement, supplemented previously, allowed for term loans up to $15 million, with a conversion option enabling lenders to convert up to $10 million into Eyenovia’s common stock at $1.68 per share. With a current ratio of 0.34 and total debt of $11.15 million, InvestingPro data indicates the company operates with significant debt burden and short-term obligations exceeding liquid assets. Get access to 15+ additional ProTips and comprehensive financial analysis with InvestingPro. The new amendment restricts any lender from exercising this conversion option if it would result in the lender, along with its affiliates, owning more than 9.99% of Eyenovia’s outstanding common stock post-conversion. Lenders can adjust this threshold up to 19.99% with written notice, effective 61 days after notice.
Additionally, the amendment states that if Eyenovia undergoes a fundamental transaction, such as a merger or significant asset sale, while the conversion option is outstanding, lenders can convert their loans into the same type of securities or cash they would have received if the conversion had occurred before the transaction.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Eyenovia, Inc. is advancing with a merger with Betaliq while also making strides in the development of its Optejet user-filled device (UFD). The company reported a significant reduction in cash burn, cutting it by approximately 70% compared to the previous year. For the first quarter ending March 31, 2025, Eyenovia’s net loss was $3.5 million, down from $10.9 million in the same period in 2024. In addition to these financial developments, Eyenovia faces a Nasdaq delisting notice due to its stockholders’ equity falling below the required $2.5 million threshold. The company has until June 13, 2025, to submit a plan to regain compliance, with the possibility of an extension until October 26, 2025. On the regulatory front, Eyenovia is nearing a submission for marketing approval of the Optejet UFD, expected in the fourth quarter of 2025. The device has shown promising results in Verification & Validation studies, demonstrating consistent performance and reliability. These developments underscore Eyenovia’s efforts to strengthen its financial position and expand its product offerings.
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