Tevogen Bio enters $36M line of credit with Patel Family; also grants PIPE option for $14M+

Tevogen Bio Holdings Inc.

Line of credit up to $36M, draws limited to $1M per month; interest lower of SOFR+2% or 7%.
Interest payable in common shares at $1.50/share; principal due 48 months after draw; prepayment without penalty in cash or stock.
Lender gets option to buy $14M+ in common stock at 30% discount to 10-day VWAP when TVGN hits $10/share.
Commitment fee of 1M shares to be issued upon signing definitive agreement by June 14, 2024.
Patel Family, LLP is an affiliate of 5% holder Manmohan Patel; beneficial ownership limited to 9.99%.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Tevogen Bio Holdings Inc. entered into Term Sheet for Unsecured Line of Credit Facility and Contingent PIPE Option with The Patel Family, LLP valued at up to $36.0 million unsecured line of credit facility; contingent option for $14.0 million private p (effective 2024-05-10).

Action: entry
Agreement: credit facility
Counterparty: The Patel Family, LLP
Value: up to $36.0 million unsecured line of credit facility; contingent option for $14.0 million private p
Effective: 2024-05-10

Exact text from the filing

On May 10, 2024, Tevogen Bio Holdings Inc. (the “Company”) entered into a binding term sheet (the “Term Sheet”) setting forth the Company’s principal understanding and agreement with The Patel Family, LLP (the “Lender”) with respect to (i) an unsecured line of credit facility (the “Facility”) pursuant to which the Lender will agree to lend the Company up to $36.0 million (the “Maximum Loan Amount”) and (ii) a contingent option for the Lender to purchase at least $14.0 million of the Company’s common stock in a future private placement (the “PIPE”).

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Source: SEC EDGAR

accession 0001493152-24-020275

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