Kiromic BioPharma (NASDAQ: KRBP) Issues Senior Secured Convertible Promissory Note to Accredited Investor

On December 9, 2024, Kiromic BioPharma, Inc. (the “Company”) entered into a significant agreement by issuing a 25% Senior Secured Convertible Promissory Note (the “Note”) to an accredited investor (the “Holder”). The Note, with a principal amount of $2,000,000, carries an interest rate of 25% per annum and is set to mature on December 9, 2025. Upon the occurrence of an event of default, the interest rate will escalate to 27% per annum or the highest rate permissible by law. This eventuality includes the Company’s failure to meet its payment obligations under the Note or initiating bankruptcy proceedings.

The Note allows the Holder the option to convert it into shares (the “Conversion Shares”) of the Company’s common stock, with a conversion price set at 90% of the 5-day Volume-Weighted Average Price (VWAP) for the Common Stock prior to the Notice of Conversion. However, this conversion is subject to a Beneficial Ownership Limitation equivalent to 19.99%.

The obligations under the Note, both principal and interest, are senior to all subordinated indebtedness and equity securities of the Company. Notably, the Company retains the right to undertake additional indebtedness after the Note’s issuance date, backed by its fixtures, equipment, and intellectual property, as stipulated in the Note.

Following the latest transaction, the Holder now holds various financial instruments from the Company, including multiple promissory notes, shares of different series of preferred stock, and convertible voting preferred stock.

This financial move by Kiromic BioPharma falls under Item 1.01 of the 8-K filing, indicating the entry into a material definitive agreement. Moreover, this action prompts the creation of a direct financial obligation under Item 2.03 and involves the unregistered sales of equity securities under Item 3.02.

This transaction represents a notable development for Kiromic BioPharma and underlines the Company’s strategic financial activities in the current market landscape.

The full text and details of the Note can be referenced in Exhibit 10.1 attached to the filing. For more information on this matter, the complete 8-K filing can be accessed on the SEC’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kiromic BioPharma’s 8K filing here.

Kiromic BioPharma Company Profile

Kiromic BioPharma, Inc, a clinical stage biotherapeutics company, utilizes engineered and non-engineered Gamma Delta T cell (GDT) technologies to develop therapies for solid tumors. The company develops Deltacel-01, which is in Phase 1 clinical trial, for patients with non-small cell lung cancer; Isocel in combination with low-dose radiation to treat Mesothelin Isoform 2 positive solid malignancies; ALEXIS-ISO-1, an allogeneic GDT therapy product that targets an isoform of mesothelin; Procel in combination with low-dose radiation to treat PD-L1 positive solid malignancies; and ALEXIS-PRO-1, an allogeneic GDT therapy product that targets PD-L1.