Eyenovia, Inc. Announces Debt Restructuring Including Amendment to Senior Secured Debt, Improving Cash Runway to Allow for the Evaluation of Strategic Alternatives

Rhea-AI Summary

Eyenovia (NASDAQ: EYEN) has announced a debt restructuring through an amendment to its senior secured convertible debt due November 1, 2025. The key changes include:

- Deferral of monthly interest and amortization payments from March 2025 through September 2025
- Option for full debt conversion into common shares starting April 1, 2025, at $1.68 per share

The restructuring aims to improve the company's near-term liquidity position and capital structure while it continues developing its proprietary Optejet® device. CEO Michael Rowe indicated that the company is in discussions with multiple parties regarding strategic alternatives to maximize shareholder value. Chardan served as the exclusive financial advisor for this transaction.

Positive

• Improved near-term cash position through deferral of debt payments until September 2025
• Debt conversion option provides potential path to reduce debt burden
• Active discussions with multiple parties for strategic alternatives

Negative

• Company seeking strategic alternatives suggests possible financial difficulties
• Debt restructuring indicates cash flow challenges
• Debt conversion at $1.68 per share could lead to significant shareholder dilution

Insights

Financial Restructuring Analyst

This debt restructuring represents a critical financial maneuver for Eyenovia, effectively providing a 7-month payment holiday on both interest and principal obligations through September 2025. The arrangement demonstrates several key strategic implications:

The debt conversion option at $1.68 per share aligns exactly with the current market price, suggesting a carefully negotiated agreement that balances creditor interests with potential equity upside. This structure provides two significant advantages:

• Immediate cash preservation by deferring debt service obligations
• A potential pathway to deleveraging through equity conversion, though this would result in dilution for existing shareholders

The timing of this restructuring, coupled with the company's focus on their proprietary Optejet® device development, indicates a strategic bridge to either secure additional funding or complete a potential strategic transaction. The engagement of Chardan as financial advisor and the mention of 'multiple parties' in discussions suggests an active M&A or strategic partnership process.

However, investors should note several critical factors:

• The need for debt restructuring often signals underlying cash flow challenges
• The conversion feature, while providing flexibility, could lead to significant dilution if exercised
• The emphasis on 'strategic alternatives' typically indicates the board is considering various options including potential sale, merger, or significant partnership arrangements

This financial engineering buys Eyenovia important time to either advance their Optejet® device development or complete a strategic transaction, but also underscores the urgency of achieving one of these outcomes before the new September 2025 deadline. The restructuring appears to be a tactical move to maintain operational flexibility while pursuing more permanent strategic solutions.

Amendment provides financial flexibility to the Company by deferring all interest as well as principal redemption payments through September 2025, while reducing near-term cash needs

NEW YORK, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Eyenovia, Inc. (NASDAQ: EYEN) (“Eyenovia” or the “Company”), an ophthalmic technology company focused on completing development of its proprietary Optejet^® device, today announced that it has entered into an amendment to its outstanding senior secured convertible debt due November 1, 2025 (the “Amendment”).The Amendment defers the Company’s monthly interest and amortization payments from March 2025 through September 2025. Additionally, the Amendment allows the full conversion of the debt into common shares of the Company commencing on April 1, 2025, at a price of $1.68 per share.

“This Amendment strengthens Eyenovia’s capital structure and improves our near-term liquidity position, enhancing our ability to continue to develop our user-filled Optejet® device to a potential near-term regulatory filing while we evaluate strategic alternatives to maximize shareholder value,” stated Michael Rowe, Chief Executive Officer of Eyenovia. “We appreciate the confidence that our lender has placed in us as we continue to advance meaningful discussions with multiple parties. We look forward to providing a comprehensive update soon.”

Additional information regarding the Amendment will be set forth in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.

Chardan acted as exclusive financial advisor to the Company.

There can be no assurance that the Amendment or the Company’s efforts to evaluate strategic alternatives will result in one or more transactions, or other strategic changes or outcomes, or that the terms of any such transactions, changes, or outcomes will be favorable. Even if the Company enters into a definitive agreement, the Company may not be successful in completing a transaction, strategic change or outcome, or, if it completes such a transaction, strategic change or outcome, it may not ultimately enhance value or deliver the expected benefits.

About Eyenovia, Inc.

Eyenovia, Inc. is an ophthalmic technology company developing its proprietary Optejet topical ophthalmic medication dispensing platform. The Optejet may be especially useful in treatment of chronic front-of-the-eye diseases due to its ease of use, enhanced safety and tolerability, and potential for superior compliance versus standard eye drops. Together, these benefits may combine to produce better treatment options and outcomes for patients and providers. For more information, please visit Eyenovia.com.

Forward Looking Statements

Except for historical information, all the statements, expectations and assumptions contained in this press release are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions, including those relating to the estimated market opportunities for our platform technology and the regulatory pathway and timing for availability of our products. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and in some cases are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the U.S. Securities and Exchange Commission.

In addition, such statements could be affected by risks and uncertainties related to, among other things: the potential advantages of our products and platform technology; the regulatory pathway that would apply to our products; our estimates regarding the potential market opportunity for our products; reliance on third parties to develop and commercialize our products; the ability of us and our partners to timely develop, implement and maintain manufacturing, commercialization and marketing capabilities and strategies for our products; intellectual property risks; changes in legal, regulatory, legislative and geopolitical environments in the markets in which we operate and the impact of these changes on our ability to obtain and maintain regulatory approval for our products and product candidates; our competitive position; our ability to raise additional funds and to make payments on our debt obligations as and when necessary; and our ability to pursue strategic alternatives.

Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, Eyenovia does not undertake any obligation to update any forward-looking statements.

Eyenovia Contact:
Eyenovia, Inc.
Norbert Lowe
Sr. Vice President, Commercial Operations
admin@eyenovia.com

Eyenovia Investor Contact:
Eric Ribner
LifeSci Advisors, LLC
eric@lifesciadvisors.com
(646) 751-4363

FAQ

What are the key terms of Eyenovia's debt restructuring announced in February 2025?

The restructuring defers monthly interest and amortization payments from March 2025 through September 2025, and allows for full debt conversion into common shares starting April 1, 2025, at $1.68 per share.

How will the EYEN debt conversion price of $1.68 affect shareholders?

The debt conversion price of $1.68 per share could lead to dilution of existing shareholders' ownership if the debt holders choose to convert their holdings into common shares.

What is the purpose of Eyenovia's debt restructuring in 2025?

The restructuring aims to improve near-term liquidity, strengthen capital structure, and provide flexibility while the company develops its Optejet® device and evaluates strategic alternatives.

When will EYEN's deferred debt payments resume under the new amendment?

The deferred debt payments are scheduled to resume after September 2025, according to the amendment terms.