Seelos Therapeutics (NASDAQ:SEEL), Inc., a Nevada-incorporated pharmaceutical company, has entered into an amendment of its financial agreement with Lind Global Asset Management V, LLC. The amendment, effective today, modifies the terms of a Convertible Promissory Note originally issued on November 23, 2021.
The amendment stipulates that Seelos will not be required to maintain a minimum cash balance until October 31, 2024. After this date, the company must keep cash or equivalents totaling at least 50% of the outstanding principal of the note. Additionally, Lind Global has agreed to refrain from asserting any Material Adverse Effect claims based on events occurring on or before today.
Furthermore, Seelos has committed to seeking stockholder approval by October 31, 2024, for the issuance of shares related to the repayment or conversion of the March 2024 principal increase amount of the note, as per Nasdaq Listing Rule 5635(d). This represents an extension from the previously set deadline of July 31, 2024.
This financial maneuvering is part of Seelos's ongoing efforts to manage its capital structure and adhere to the regulatory requirements of The Nasdaq Stock Market LLC, where its common stock is traded under the ticker symbol NASDAQ:SEEL.
The details of this amendment were disclosed in a Form 8-K filed with the United States Securities and Exchange Commission (SEC) by Seelos Therapeutics, Inc., and can be referred to in Exhibit 4.1 of the filing. This move is seen as a strategic step by Seelos Therapeutics as it navigates its financial obligations and corporate governance responsibilities.
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