NanoViricides extends executive contracts and amends credit line

Published 01/10/2025, 22:30
NanoViricides extends executive contracts and amends credit line

NanoViricides, Inc. (NYSE American:NNVC), a small-cap biotechnology company with a market capitalization of $23.16 million and current share price of $1.44, announced Wednesday the extension of employment agreements for two senior executives and an amendment to its line of credit, according to a press release statement based on a filing with the Securities and Exchange Commission. InvestingPro analysis indicates the company is currently trading below its Fair Value, though facing significant operational challenges with negative EBITDA of $8.85 million in the last twelve months.

The company entered into an extension agreement for President Dr. Anil R. Diwan, effective July 1, 2025. Under the terms, Dr. Diwan will continue as President until June 30, 2026, with an annual base salary of $400,000. He will participate in all employee benefits and receive a $2 million term life insurance policy, with $1 million assigned to NanoViricides and the remainder to Dr. Diwan’s estate. Dr. Diwan was also granted 10,204 shares of Series A Preferred Stock, vesting quarterly from September 30, 2025, to June 30, 2026. If terminated by the company for reasons other than cause, Dr. Diwan will be eligible for six months’ severance pay and continued benefits during that period.

NanoViricides also extended the employment agreement of Chief Financial Officer Meeta Vyas, effective July 1, 2025, for one year through June 30, 2026. Ms. Vyas will receive a monthly salary of $10,800 and up to 50% reimbursement for health insurance costs, not exceeding $2,500 per month. The extension maintains the general terms of her previous agreement, which is renewable annually.

The company reported an amendment to its line of credit with Dr. Diwan. On July 25, 2025, the maturity of the line of credit was extended from March 31, 2026, to March 31, 2027. The line of credit, which was previously increased to $3 million on September 23, 2024, carries a fixed interest rate of 12% and is secured by company real estate and equipment. According to InvestingPro data, the company’s cash burn rate remains a concern, with negative free cash flow of $8.54 million in the last twelve months, highlighting the importance of maintaining credit facilities.

These updates were disclosed in a recent SEC filing. For deeper insights into NanoViricides’ financial health and additional exclusive analysis, including more than 30 key financial metrics and expert ProTips, visit InvestingPro.

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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