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Scorpius Holdings, Inc., a pharmaceutical company based in North Carolina, with a current market capitalization of $1.14 million and trailing twelve-month revenue of $10.04 million, has entered into a financial agreement with an institutional investor, issuing a non-convertible promissory note valued at $1 million, according to a recent SEC filing. The note, dated today, February 12, 2025, carries an interest rate of 5.0% per annum and is set to mature on the earlier of April 30, 2025, or upon the occurrence of a corporate event or default. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value.
The company, known for its work in pharmaceutical preparations, has agreed to a premium payment of 5% of the principal amount upon maturity, redemption, or prepayment of the note. This agreement comes with standard events of default, which include failure to pay any indebtedness exceeding $150,000 or an event of default on any other outstanding promissory note of the company. InvestingPro data reveals the company’s current ratio stands at 0.62, indicating potential liquidity challenges, with short-term obligations exceeding liquid assets.
In the event of a subsequent financing round while the note is outstanding, the holder has the right to demand the redemption of the entire balance, including accrued interest, using up to 100% of the gross proceeds from the financing.
This financial move by Scorpius Holdings was made in accordance with exemptions from registration under the Securities Act of 1933. The details provided in the SEC filing highlight the terms of the promissory note and offer insight into the company’s current financial strategies.
The SEC filing also indicates that Scorpius Holdings, formerly known as NightHawk Biosciences, Inc., and before that as HEAT BIOLOGICS, INC., has undergone previous name changes, with the most recent occurring on May 2, 2022.
The information disclosed in this article is based on the company’s SEC filing and is intended to provide investors with a factual update on Scorpius Holdings’ financial activities. For deeper insights into Scorpius Holdings’ financial health, including 13 additional ProTips and comprehensive financial metrics, investors can access InvestingPro’s detailed analysis platform.
In other recent news, Scorpius Holdings, Inc. has been actively navigating its financial landscape. The pharmaceutical company has issued a non-convertible promissory note valued at $225,000 to an institutional investor, carrying an interest rate of 5.0% per annum. In a similar vein, Scorpius Holdings also secured $600,000 through the issuance of another non-convertible promissory note to an institutional investor, with an annual interest rate of 5.0%.
These financial obligations are part of Scorpius Holdings’ broader financial strategy, as the company disclosed in a recent SEC filing its urgent need for additional capital to continue operations. The company is exploring various financing options, including equity and debt financings, equipment sale leasebacks, and potential partnerships or collaborations.
However, the company faces certain limitations in its ability to raise capital through securities sales due to the late filing of its 2023 Annual Report and its Quarterly Report for the quarter ended March 31, 2024. These recent developments indicate Scorpius Holdings’ strategic approach to securing funds in the short term, while also outlining the potential consequences of not securing additional funds on acceptable terms.
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