PetVivo Holdings secures $500,000 through promissory notes

EDINA, MN – PetVivo Holdings, Inc. (OTCQB:PETV), a company specializing in medical devices and therapeutics for animals, has entered into material agreements with two of its existing shareholders, securing a total of $500,000 in financing through promissory notes, according to a recent SEC filing. According to InvestingPro data, the company currently operates with $0.96M in revenue and maintains a strong gross margin of 76.13%, though it faces challenges with profitability. The notes were issued on February 14, 2025, and carry a one-year maturity with a 10% annual interest rate. InvestingPro analysis reveals that PetVivo’s current ratio stands at 0.42, indicating potential liquidity challenges, with short-term obligations exceeding liquid assets.

Under the terms of the promissory notes, one shareholder lent $300,000 and the other $200,000. These loans can be converted into approximately 846,154 restricted shares of the company’s common stock at a conversion price of $0.65 per share. The shares are subject to restrictions under Rule 144 of the Securities Act and bear a legend indicating their status as "restricted securities."

In addition to the promissory notes, the lenders received warrants as additional compensation. These warrants grant the right to purchase 150,000 and 100,000 shares of common stock, respectively, with a three-year term and an exercise price of $0.90 per share.

The issuance of the promissory notes and the accompanying warrants are intended to provide the company with additional capital. The transactions are exempt from registration under Section 4(a)(2) of the Securities Act, as the lenders are accredited investors who have acquired the securities for investment purposes.

The details of these financial instruments are outlined in the associated SEC filing, which serves as the source of information for this report. PetVivo Holdings, Inc., headquartered in Edina, Minnesota, operates under the SIC code for Surgical & Medical (TASE:PMCN) Instruments & Apparatus.

This financial move by PetVivo Holdings, Inc. reflects its ongoing efforts to secure funding for its operations and development of medical solutions for the veterinary market. The company’s stock is currently traded on the OTCQB under the ticker PETV, with its warrants traded on the OTC PINK under the ticker PETVW. Trading at $0.68, the stock has shown significant volatility, with a 52-week range of $0.29 to $1.25. For deeper insights into PetVivo’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive metrics and expert research reports.

In other recent news, PetVivo Holdings Inc. has reported a significant surge in its Q3 FY2025 revenues, attributing this growth to an expanded distribution network. The company’s revenue rose by 191% sequentially, amounting to $583,000. Despite a minor 2% decline year-over-year, PetVivo managed to maintain a high gross margin of 89.5%. Net losses also decreased significantly compared to the previous year.

The company’s distribution network now extends to over 800 veterinary clinics. PetVivo is focusing its efforts on expanding its presence in the small animal and equine markets and plans to continue clinical studies to support product adoption. The company’s executives highlighted their strategic focus on corporate veterinary clinics, noting that approximately 75% of veterinary clinics are owned by major corporate clients.

Recent developments include the introduction of a new product, Precise PRP, which was approved for safety by the Center of Veterinary Medicine. However, the company also recognizes potential risks and challenges such as market saturation in the veterinary sector, logistical challenges related to expanding distribution networks, regulatory hurdles for new product approvals, competitive pressures in the regenerative medicine space, and economic factors affecting consumer spending on pet healthcare.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.