Tonix Pharmaceuticals gets $11 million 36-month loan agreement

Chicago, Dec. 8 – Tonix Pharmaceuticals Holding Corp. announced a Dec. 8-signed loan and guaranty agreement for $11 million with JGB Capital, LP, JGB Partners, LP, JGB (Cayman) Cornish Rock Ltd. and any other lenders in an 8-K filing.

The 36-month term loan will have interest based on the greater of 12% or Prime plus 350 basis points. The default rate is 400 bps higher.

There is an original discount at 91.

There is a prepayment premium of $700,000 if the loan is repaid before Dec. 8, 2024, $1 million after Dec. 8, 2024 to Dec. 8, 2025 and $1.3 million if prepaid after Dec. 8, 2025.

The term loan is secured by first priority security interests in the company’s R&D center in Frederick, Maryland, the advanced development center in North Dartmouth, Mass., and substantially all of the loan parties’ deposit accounts.

Tonix is a specialty pharmaceutical company based in Chatham, N.J.

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