ProPhase Labs, Inc. (PRPH): debt financing — ProPhase Labs borrows $500K each from CEO and investor; issues 500K unvested warrants at $0.60

ProPhase Labs, Inc.

Borrowed $500,000 each from CEO Ted Karkus and an unaffiliated investor (total $1M) under two identical loan agreements.
Each loan has 20% original issue discount, 10% annual interest, 12-month maturity; secured but subordinated to up to $6M other lenders.
Issued 500,000 unvested warrants at $0.60 exercise price; vest only upon shareholder approval to increase authorized shares.
CEO loan is a related-party transaction approved by the Audit Committee.

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

ProPhase Labs, Inc. incurred loan of $500,000 with Ted Karkus at 10% maturing twelve (12) months from the execution date.

Instrument: loan
Principal: $500,000
Counterparty: Ted Karkus
Rate: 10%
Maturity: twelve (12) months from the execution date
Event: incurrence

Exact text from the filing

the Loan Agreement constitutes a related party transaction under Item 404(a) of Regulation S-K. The material terms of the loan are a non-convertible loan in the amount of $500,000, with a 20% original issue discount. The loan bears interest at an annual rate of 10% and matures twelve (12) months from the execution date. The Company will pay Mr. Karkus a

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101 debt financings filed in the last 30 days. Browse all debt financings →

ProPhase Labs, Inc. filing history →

Source: SEC EDGAR

accession 0001641172-25-016710

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