secwatch.observer — SEC 8-K summary
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Issuer:     LIFECORE BIOMEDICAL, INC. DE (LFCR)
CIK:        0001005286
Form:       8-K
Filed at:   2023-01-10T23:59:59+00:00
Accession:  0001005286-23-000015
Event type: other_material
Sentiment:  positive
Materiality: 0.75
Item codes: 1.01, 2.03, 3.02, 3.03, 5.02, 5.03, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Lifecore raises $38.75M via convertible preferred stock; amends credit facilities for liquidity and covenant relief
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- Issued 38,750 Series A convertible preferred shares at $1,000 each for total gross proceeds of $38.75M; conversion price $7.00/share, 7.5% PIK dividend.
- Amended credit facilities: revolver reduced to $60.0M, interest margin increased by 2% (payable-in-kind), first amortization payment deferred to Q1 2025.
- Financial covenant relief: minimum fixed charge coverage ratio waiver until May 2023, then starts at 0.75:1; max leverage ratio set at 8.00:1 for May 2023 quarter.
- Board appointed Nathaniel Calloway (22NW) and Christopher Kiper (Legion Partners) as directors under Series A director right.
- Proceeds used for working capital, capex, debt repayment, and general corporate purposes while pursuing non-CDMO asset divestiture.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1005286/000100528623000015/0001005286-23-000015-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1005286/000100528623000015/lndc-20230109.htm
  HTML page:      https://secwatch.observer/filing/0001005286-23-000015

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