Know Labs extends debt maturity to 2025

Published 18/12/2024, 22:24
Know Labs extends debt maturity to 2025

Know Labs, Inc. (NYSE American: KNW), a micro-cap company with a market value of $20.33 million specializing in measuring and controlling devices, has reached an agreement to amend the terms of its senior secured convertible redeemable notes, extending their maturity by one year.

The Seattle-based company, formerly known as Visualant Inc, has amended the due dates of the notes held by Clayton Struve. The original maturity date of September 30, 2024, has been extended to September 30, 2025. This extension applies to notes originally issued on September 30, 2016, August 14, 2017, December 12, 2017, and February 28, 2018. According to InvestingPro analysis, the company reported an EBITDA of -$15.14 million in the last twelve months, highlighting the importance of managing its debt obligations.

Investors and stakeholders in Know Labs may view this development as a strategic financial move, particularly given the company's stock performance, which has declined 73.32% over the past year and currently trades near its 52-week low of $0.17. The extension of the note's maturity suggests a renegotiation of terms that could impact the company's financial strategy. For deeper insights into Know Labs' financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports.

The company disclosed a Q3 net loss of $4.1 million for fiscal year 2024, marking an improvement from the previous year. In a recent financing round, Know Labs successfully raised $1.655 million. The Seattle-based company also extended the maturity date of its debt from September 30, 2024, to September 30, 2025, and increased the interest rate on these notes from 6% to 8%.

Know Labs announced the appointment of John Cronin as Interim Chief Technology Officer and Dominic Klyve, Ph.D., as Chief Science Officer. Furthermore, the company's stockholders approved an increase in authorized shares of common stock from 200 million to 300 million and the amendment of the 2021 Equity Incentive Plan, expanding the number of shares available for issuance to 40 million.

The company has been granted an extension by NYSE American LLC to regain compliance with the exchange's listing standards by March 27, 2026. Know Labs also announced a registered direct offering priced at-the-market under NYSE American rules, with gross proceeds expected to be $300,000 before deductions.

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