ACURA PHARMACEUTICALS, INC: debt financing — Acura secures $250K loan from AD Pharma, extends LTX-03 NDA deadline to March 2024, warns of possible bankruptcy

ACURA PHARMACEUTICALS, INC

Received $250,000 loan from AD Pharma (owns ~66% of stock), bringing total debt to $4,669,279 at 5.25% interest, due Dec 31, 2023.
If not repaid, default interest rises to 7.5%; company states without additional funding it will scale back or cease operations.
Amended LTX-03 development deal: FDA NDA acceptance deadline extended to March 31, 2024; AD Pharma can terminate anytime.
If NDA not accepted by March 31, 2024, AD Pharma may take over LTX-03 intellectual property.
AD Pharma, controlled by John Schutte, also holds warrants for 10M shares; Schutte directly owns ~14% of Acura.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ACURA PHARMACEUTICALS, INC incurred loan of $250,000 loan with Abuse Deterrent Pharma, LLC at 5.25% maturing December 31, 2023.

Instrument: loan
Principal: $250,000 loan
Counterparty: Abuse Deterrent Pharma, LLC
Rate: 5.25%
Maturity: December 31, 2023
Event: incurrence

Exact text from the filing

On December 4, 2023 we received a $250,000 loan from Abuse Deterrent Pharma, LLC (“AD Pharma”). This loan combined with previous loans made to the Company and with the $2,319,279 under the November 10, 2022 Amended Consolidated and Restated Secured Promissory Note, now totals $4,669,279, bears interest at 5.25% and matures on December 31, 2023, at which time all principal and interest is due (“Note”).

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Source: SEC EDGAR

accession 0001104659-23-123925

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