Beyond Air, a commercial stage medical device and biopharmaceutical company focused on harnessing the power of endogenous and exogenous nitric oxide (NO) to improve the lives of patients, terminated its loan and security agreements with Avenue Capital and entered into an $11.5 million loan agreement with an insider-led investor group.
“These transactions, along with today’s announced equity raise, immediately strengthen our balance sheet, eliminate debt payments through mid-2026, extend our cash runway and allow us to continue the momentum of our recent commercial efforts for LungFit PH,” Steve Lisi, chairman and CEO of Beyond Air, said. “We are extremely pleased to add multiple institutional healthcare funds as investment partners who share our vision for the promising future potential for LungFit PH. The significant increase in hospital contracts since July 1st, including our new partnership with the U.S. Naval Hospital Guam, is a testament to our commercial momentum.”
Beyond Air and Avenue Capital have reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85 million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from Oct. 1, 2024 through June 30, 2026 of $12 million. In addition, Avenue Capital is investing $3.35 million in Beyond Air through the private placement equity offering.
Beyond Air entered into a $11.5 million royalty funding agreement led by certain Beyond Air board members based on net sales of LungFit PH. This debt will carry a payment-in-kind interest rate of 15% until July 2026. Payments for interest and principal will commence in July 2026 and be determined based on an 8% royalty rate on sales of LungFit PH. Payments will continue until principal and accrued interest are paid off.
Roth Capital Partners and Ladenburg Thalmann acted as advisors to the debt transactions.
