Beyond Air Announces Termination of the Loan and Security Agreements with Avenue Capital
Beyond Air (NASDAQ: XAIR) has announced significant financial restructuring, terminating its loan agreements with Avenue Capital and entering a new $11.5 million loan agreement with an insider-led investor group. The company is retiring $17.5 million in Avenue Capital debt, eliminating $12 million in scheduled debt payments through June 2026. The new loan agreement defers payment of principal and interest until June 2026.
Notably, Beyond Air reports a 60% increase in hospital contracts since July 1, 2024, including a contract with U.S. Naval Hospital Guam. The company's CEO, Steve Lisi, emphasized that these transactions strengthen the balance sheet, extend cash runway, and support commercial momentum for LungFit PH. David Webster, Chief Commercial Officer, expressed confidence in LungFit PH's potential to gain significant market share in the United States and globally.
The company is withdrawing its previous revenue guidance for fiscal year 2025 but believes the financial restructuring will provide sufficient cash runway through June 2026.
Beyond Air (NASDAQ: XAIR) ha annunciato una significativa ristrutturazione finanziaria, terminando i suoi accordi di prestito con Avenue Capital e stipulando un nuovo accordo di prestito di 11,5 milioni di dollari con un gruppo di investitori guidato da insider. L'azienda sta estinguendo 17,5 milioni di dollari di debito verso Avenue Capital, eliminando 12 milioni di dollari in pagamenti di debito programmati fino a giugno 2026. Il nuovo accordo di prestito rinvia il pagamento di capitale e interessi fino a giugno 2026.
Significativamente, Beyond Air riporta un aumento del 60% nei contratti ospedalieri dal 1° luglio 2024, inclusa una contratto con il Naval Hospital Guam degli Stati Uniti. Il CEO dell'azienda, Steve Lisi, ha sottolineato che queste transazioni rafforzano il bilancio, estendono la liquidità e supportano lo slancio commerciale per LungFit PH. David Webster, Chief Commercial Officer, ha espresso fiducia nel potenziale di LungFit PH di guadagnare una quota di mercato significativa negli Stati Uniti e a livello globale.
L'azienda sta ritirando le sue precedenti previsioni sui ricavi per l'esercizio fiscale 2025, ma crede che la ristrutturazione finanziaria fornirà una liquidità sufficiente fino a giugno 2026.
Beyond Air (NASDAQ: XAIR) ha anunciado una importante reestructuración financiera, finalizando sus acuerdos de préstamo con Avenue Capital y entrando en un nuevo acuerdo de préstamo de 11,5 millones de dólares con un grupo de inversores liderado por personas internas. La compañía está retirando 17,5 millones de dólares de deuda con Avenue Capital, eliminando 12 millones de dólares en pagos programados de deuda hasta junio de 2026. El nuevo acuerdo de préstamo pospone el pago de capital e intereses hasta junio de 2026.
Notablemente, Beyond Air informa un aumento del 60% en los contratos hospitalarios desde el 1 de julio de 2024, incluyendo un contrato con el Hospital Naval de Guam de EE. UU. El CEO de la compañía, Steve Lisi, enfatizó que estas transacciones fortalecen el balance, extienden la liquidez y apoyan el impulso comercial de LungFit PH. David Webster, Chief Commercial Officer, expresó confianza en el potencial de LungFit PH para obtener una participación significativa en el mercado en los Estados Unidos y a nivel mundial.
La compañía está retirando su orientación de ingresos anterior para el año fiscal 2025, pero cree que la reestructuración financiera proporcionará suficiente liquidez hasta junio de 2026.
비욘드 에어(NASDAQ: XAIR)는 재정 구조 조정을 발표하며 에비뉴 캐피탈과의 대출 계약을 종료하고 내부자 주도 투자 그룹과 1150만 달러의 신규 대출 계약을 체결했습니다. 회사는 에비뉴 캐피탈에 대한 1750만 달러의 부채를 상환하고 2026년 6월까지 예정된 1200만 달러의 부채 상환을 면제합니다. 새로운 대출 계약은 원금 및 이자 지급을 2026년 6월까지 연기합니다.
특히 비욘드 에어는 2024년 7월 1일 이후 병원 계약이 60% 증가했다고 보고하며, 미국 해군 병원 괌과 계약을 포함합니다. 회사의 CEO인 스티브 리시는 이러한 거래가 재무 구조를 강화하고 현금 유동성을 연장하며 LungFit PH의 상업적 모멘텀을 지원한다고 강조했습니다. 최고 상업 책임자 데이비드 웹스터는 LungFit PH가 미국 및 전 세계에서 상당한 시장 점유율을 확보할 잠재력에 대해 자신감을 표명했습니다.
회사는 2025 회계연도에 대한 이전 수익 전망을 철회하고 있지만, 재정 구조 조정이 2026년 6월까지 충분한 현금 유동성을 제공할 것이라고 믿고 있습니다.
Beyond Air (NASDAQ: XAIR) a annoncé une importante restructuration financière, mettant fin à ses accords de prêt avec Avenue Capital et entrant dans un nouvel accord de prêt de 11,5 millions de dollars avec un groupe d'investisseurs dirigé par des initiés. L'entreprise va rembourser 17,5 millions de dollars de dettes envers Avenue Capital, supprimant 12 millions de dollars de paiements de dettes prévus jusqu'en juin 2026. Le nouvel accord de prêt reporte le paiement du principal et des intérêts jusqu'en juin 2026.
Notablement, Beyond Air rapporte une augmentation de 60% des contrats hospitaliers depuis le 1er juillet 2024, y compris un contrat avec l'hôpital naval américain de Guam. Le PDG de l'entreprise, Steve Lisi, a souligné que ces transactions renforcent le bilan, prolongent la liquidité et soutiennent l'élan commercial de LungFit PH. David Webster, directeur commercial, a exprimé sa confiance dans le potentiel de LungFit PH à obtenir une part de marché significative aux États-Unis et dans le monde.
L'entreprise retire ses précédentes prévisions de revenus pour l'exercice 2025, mais estime que la restructuration financière fournira une liquidité suffisante jusqu'en juin 2026.
Beyond Air (NASDAQ: XAIR) hat eine bedeutende finanzielle Umstrukturierung bekannt gegeben, indem die Kreditverträge mit Avenue Capital beendet und ein neuer Kreditvertrag über 11,5 Millionen Dollar mit einer von Insidern geführten Investorengruppe eingegangen wurde. Das Unternehmen tilgt 17,5 Millionen Dollar Schulden bei Avenue Capital und beseitigt 12 Millionen Dollar an geplanten Schuldenzahlungen bis Juni 2026. Der neue Kreditvertrag verschiebt die Zahlung von Kapital und Zinsen bis Juni 2026.
Bemerkenswerterweise berichtet Beyond Air von einem 60%-igen Anstieg der Krankenhausverträge seit dem 1. Juli 2024, einschließlich eines Vertrags mit dem U.S. Naval Hospital Guam. Der CEO des Unternehmens, Steve Lisi, betonte, dass diese Transaktionen die Bilanz stärken, die Liquidität erhöhen und den kommerziellen Schwung für LungFit PH unterstützen. David Webster, Chief Commercial Officer, äußerte Vertrauen in das Potenzial von LungFit PH, einen erheblichen Marktanteil in den Vereinigten Staaten und weltweit zu gewinnen.
Das Unternehmen zieht seine frühere Umsatzprognose für das Geschäftsjahr 2025 zurück, ist jedoch der Ansicht, dass die finanzielle Umstrukturierung eine ausreichende Liquidität bis Juni 2026 gewährleisten wird.
- Retirement of $17.5 million in Avenue Capital debt
- New $11.5 million loan agreement with deferred payments until June 2026
- 60% increase in hospital contracts since July 1, 2024
- New contract with U.S. Naval Hospital Guam
- Extended cash runway through June 2026
- Withdrawal of previous revenue guidance for fiscal year 2025
- New loan carries a high 15% payment-in-kind interest rate
Insights
This news is significantly positive for Beyond Air. The company has successfully restructured its debt, which improves its financial position in several ways:
- Retiring
$17.5 million in debt from Avenue Capital - Eliminating
$12 million in scheduled debt payments through June 2026 - Securing a new
$11.5 million loan with deferred payments until June 2026
This restructuring provides Beyond Air with improved cash flow and extended runway. The
Beyond Air's LungFit PH system is gaining traction in the medical device market, as evidenced by the
– Retiring
– Eliminating
–
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GARDEN CITY, N.Y., Sept. 27, 2024 (GLOBE NEWSWIRE) -- Beyond Air, Inc. (NASDAQ: XAIR) (“Beyond Air” or the “Company”), 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, today announced that it has terminated the loan and security agreements with Avenue Capital and entered into an
“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. 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,” commented Steve Lisi, Chairman and Chief Executive Officer of Beyond Air. “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.”
Retiring
Beyond Air and Avenue Capital have reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of
The Company entered into a
Commercial Update
Since July 1, 2024, Beyond Air has increased the number of hospital contracts by
“Since early July 2024, when I joined Beyond Air, I have become more convinced that LungFit PH will take significant market share in the United States over the next few years. The groundwork being laid today will accelerate growth in the near term,” stated David Webster, Chief Commercial Officer of Beyond Air. “LungFit PH attributes, such as using ambient air as its source of NO, simplicity of use, portability, improved safety profile and environmental advantages, will not only drive market share growth in the United States, but globally as well.”
The Company believes the retirement of the Avenue debt the royalty based loan and concurrent equity financing will provide sufficient cash runway to support its operations through June 2026. The Company is withdrawing its previous revenue guidance for fiscal year 2025.
Roth Capital Partners and Ladenburg Thalmann & Co. acted as advisors to the debt transactions.
About Beyond Air®, Inc.
Beyond Air is a commercial stage medical device and biopharmaceutical company dedicated to harnessing the power of endogenous and exogenous nitric oxide (NO) to improve the lives of patients suffering from respiratory illnesses, neurological disorders, and solid tumors. The Company has received FDA approval for its first system, LungFit® PH, for the treatment of term and near-term neonates with hypoxic respiratory failure. Beyond Air is currently advancing its other revolutionary LungFit systems in clinical trials for the treatment of severe lung infections such as viral community-acquired pneumonia (including COVID-19), and nontuberculous mycobacteria (NTM) among others. Also, the Company has also partnered with The Hebrew University of Jerusalem to advance a pre-clinical program dedicated to the treatment of autism spectrum disorder (ASD) and other neurological disorders. Additionally, Beyond Cancer, Ltd., an affiliate of Beyond Air, is investigating ultra-high concentrations of NO with a proprietary delivery system to target certain solid tumors in the pre-clinical setting. For more information, visit www.beyondair.net.
Forward Looking Statements
This press release contains “forward-looking statements” (as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended). You can identify such forward-looking statements by the words “appears,” “expects,” “plans,” “anticipates,” “believes” “expects,” “intends,” “looks,” “projects,” “goal,” “assumes,” “targets” and similar expressions and/or the use of future tense or conditional constructions (such as “will,” “may,” “could,” “should” and the like) and by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. These forward-looking statements are only predictions and reflect views as of the date they are made with respect to future events and financial performance. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including those related to the completion of the offering, risks related to the ability to raise additional capital; the timing and results of future pre-clinical studies and clinical trials; the potential that regulatory authorities, including the FDA and comparable non-U.S. regulatory authorities, may not grant or may delay approval for our product candidates; the approach to discover and develop novel drugs, which is unproven and may never lead to efficacious or marketable products; the ability to fund and the results of further pre-clinical studies and clinical trials of our product candidates; obtaining, maintaining and protecting intellectual property utilized by products; obtaining regulatory approval for products; competition from others using similar technology and others developing products for similar uses; dependence on collaborators; and other risks, which may, in part, be identified and described in the “Risk Factors” section of Beyond Air’s most recent Annual Report on Form 10-K and other of its filings with the Securities and Exchange Commission, all of which are available on Beyond Air’s website. Beyond Air undertakes no obligation to update, and have no policy of updating or revising, these forward-looking statements, except as required by applicable law.
CONTACTS:
Investor Relations contacts
Corey Davis, Ph.D.
LifeSci Advisors, LLC
Cdavis@lifesciadvisors.com
(212) 915-2577
FAQ
What financial restructuring has Beyond Air (XAIR) announced?
How has Beyond Air's (XAIR) hospital contract growth changed since July 1, 2024?
What are the terms of Beyond Air's (XAIR) new $11.5 million loan agreement?
Has Beyond Air (XAIR) changed its financial guidance for fiscal year 2025?
