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NKGen Biotech, Inc. has revised its loan agreement with East West Bank, according to a recent SEC filing. The amendment, retroactive to April 14, 2025, extends the maturity date of the company’s existing $5 million loan to January 15, 2027. The micro-cap company, currently valued at $6.07 million, faces significant financial challenges with a concerning current ratio of 0.02, according to InvestingPro data.
The Santa Ana-based biotechnology firm, which specializes in biological products, has also agreed to an increased interest rate of 10% per annum, payable monthly. Furthermore, NKGen Biotech will place $250,000 in a restricted account for interest payments and has set a new amortization schedule for principal repayments. The company’s financial restructuring comes amid challenging conditions, with InvestingPro analysis showing negative EBITDA of $30.11 million in the last twelve months.
The initial payment of $1 million is due on June 1, 2025, with subsequent payments outlined in the amendment. Should NKGen Biotech default or reach the loan’s maturity, the interest rate will rise by 5 percentage points, not exceeding the maximum legal rate.
This financial maneuvering by NKGen Biotech, previously known as Graf Acquisition Corp. IV, is detailed in the 8-K form filed with the SEC on April 22, 2025. The company’s common stock and warrants are traded on the OTC Pink under the symbols NKGN and NKGNW, respectively.
Investors and stakeholders can refer to the full amendment document, Exhibit 10.1 of the 8-K filing, for comprehensive terms of the agreement. This move reflects NKGen Biotech’s efforts to restructure its financial obligations and secure its operational funding for the near future.
In other recent news, NKGen Biotech has secured a convertible loan agreement for up to $5 million with AlpineBrook Capital GP I Limited, as per its latest SEC filing. The loan, which carries a 12% annual interest rate, is intended to repay existing senior secured debt and involves an initial advance of $1 million. Additionally, NKGen Biotech has transitioned to trading on the OTC Markets following its delisting from the Nasdaq Global Market due to non-compliance with market value requirements. Despite this setback, the company plans to apply for trading on the OTCQX platform and has expressed confidence that the move will not hinder ongoing financing discussions or shareholder support. In a significant regulatory development, the U.S. Food and Drug Administration (FDA) has granted Fast Track designation to NKGen’s investigational drug troculeucel, aimed at treating moderate Alzheimer’s disease. This designation facilitates more frequent interactions with the FDA, potentially expediting the drug’s path to market. NKGen is actively conducting a Phase 2a trial for troculeucel and expects to release updated clinical data by the end of 2025. The company’s strategic focus remains on developing NK cell therapeutics for neurodegenerative disorders and various cancers.
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