Awakn Life Sciences Announces Credit Facility
Rhea-AI Summary
Awakn Life Sciences (OTCQB: AWKNF) has secured an unsecured credit facility of up to US$535,000 from an arm's length creditor. The facility can be drawn in multiple advances and is evidenced by a grid promissory note. The principal will be due on December 5, 2026, bearing a 10% annual interest rate payable at maturity.
The funds will be used for general working capital purposes while the company advances its research and development projects. Awakn is currently progressing with AWKN-001 in phase 3 trials in the UK and AWKN-002 in phase 2 planning in the US.
Positive
- Secured US$535,000 credit facility extending financial runway
- AWKN-001 program advancing in phase 3 trials in UK
- AWKN-002 program progressing to phase 2 planning in US
Negative
- High interest rate of 10% on credit facility
- Reliance on debt financing for working capital needs
Toronto, Ontario--(Newsfile Corp. - December 18, 2024) - Awakn Life Sciences Corp. (CSE: AWKN) (OTCQB: AWKNF) (FSE: 954) ("Awakn" or the "Company") a clinical-stage biotechnology company developing therapeutics for substance use and mental health disorders, is pleased to announce that it has obtained an unsecured credit facility of up to US
The Grid Note contains certain other customary financial and other covenants and any principal drawn will be used for general working capital purposes. The Facility is intended to provide the Company with immediate capital while it continues to advance its research and development projects, and seek out other potential sources of capital.
"We continue to make significant progress on research programs, including our lead program AWKN-001 which is in phase 3 in the UK and AWKN-002 which in in phase 2 planning in the US and this Facility extends our runway as we progress towards new milestones," stated Anthony Tennyson, Awakn CEO.
About Awakn Life Sciences Corp.
Awakn Life Sciences Corp. is a clinical-stage biotechnology company developing therapeutics targeting addiction. Awakn has a near-term focus on Alcohol Use Disorder, a condition affecting approximately 29 million adults in the US and approximately 40 million in the US and key European markets for which the current standard of care is inadequate. Our goal is to provide breakthrough therapeutics to addiction sufferers in desperate need and our strategy is focused on commercializing our R&D pipeline across multiple channels.
www.awaknlifesciences.com | Twitter | LinkedIn
Notice Regarding Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-Looking statements reflect current expectations or beliefs regarding future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, including statements relating the business of the Company. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information. These include, but are not limited to: fluctuations in general macroeconomic conditions; the business plans and strategies of the Company; the ability of the Company to comply with all applicable governmental regulations in a highly regulated business; the inherent risks in investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal in some jurisdictions; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; fluctuations in securities markets; inconsistent public opinion and perception regarding the medical-use of psychedelic drugs; expectations regarding the size of the addiction market; and regulatory or political change. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.
Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking information. For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR at www.sedarplus.ca. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Investor Enquiries:
Anthony Tennyson, CEO, Awakn Life Sciences
anthony.tennyson@awaknlifesciences.com
416-270-9566
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234285
FAQ
What are the terms of AWKNF's new credit facility announced in December 2023?
What is the current development stage of Awakn's AWKN-001 program?
What is the status of Awakn's AWKN-002 program?
How will AWKNF use the proceeds from the credit facility?
