Kiromic BioPharma Issues 25% Senior Secured Convertible Promissory Note

On January 28, 2025, Kiromic BioPharma, Inc. (NASDAQ: KRBP) entered into a significant financial arrangement by issuing a 25% Senior Secured Convertible Promissory Note to an accredited investor. The note, valued at $1,000,000, carries an annual interest rate of 25% and is due on January 28, 2026. In the event of default, the interest rate will increase to 27% per annum or the highest allowable rate under the law. The Holder of the Note has the option to convert it into shares of the Company’s common stock, subject to certain conditions.

This note establishes the unpaid principal and interest as senior and preferred obligations of Kiromic BioPharma, superseding other indebtedness and equity securities. The company retains the ability to incur or guarantee additional indebtedness post-issuance, supported by the company’s assets and intellectual property as specified in the agreement.

The complete terms of the Note are available in the attached Exhibit 10.1 to the filing. Following this transaction, the Holder of the Note now holds various securities and notes issued by Kiromic BioPharma.

This update was provided in a Form 8-K filing with the United States Securities and Exchange Commission on February 3, 2025. It falls under Item 1.01, detailing the Entry into a Material Definitive Agreement.

In accordance with Item 2.03 and Item 3.02 of the filing, reference to the Note issuance incorporates the creation of a direct financial obligation and the unregistered sales of equity securities respectively.

Investors and stakeholders are requested to refer to the official filing for a comprehensive understanding of the terms and conditions of this financial transaction conducted by Kiromic BioPharma, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kiromic BioPharma’s 8K filing here.

About Kiromic BioPharma

Kiromic BioPharma, Inc, a clinical stage biotherapeutics company, utilizes engineered and non-engineered Gamma Delta T cell (GDT) technologies to develop therapies for solid tumors. The company develops Deltacel-01, which is in Phase 1 clinical trial, for patients with non-small cell lung cancer; Isocel in combination with low-dose radiation to treat Mesothelin Isoform 2 positive solid malignancies; ALEXIS-ISO-1, an allogeneic GDT therapy product that targets an isoform of mesothelin; Procel in combination with low-dose radiation to treat PD-L1 positive solid malignancies; and ALEXIS-PRO-1, an allogeneic GDT therapy product that targets PD-L1.