Apr. 29 at 4:56 PM
$OTLK The New Convertible Promissory Note
On January 31, 2025, we entered into the SPA, with Avondale Capital, LLC, or the Lender, pursuant to which we expect to issue to the Lender the New Note with a face amount of
$33,100,000. The issuance of the New Note is expected to occur after the Annual Meeting, subject to the closing conditions outlined below. The New Note will initially bear interest at the prime rate (as published in the Wall Street Journal) plus 3% (subject to a floor of 9.5%) and will be scheduled to mature on July 1, 2026. We will have an obligation to repay at least
$3,000,000 of the outstanding balance of the New Note for each calendar quarter beginning with the second calendar quarter of 2025 (subject to adjustment for conversions by the Lender and to payment of an exit fee of 7.5%), or the Quarterly Debt Reduction Obligations.
