ProPhase Labs, Inc. (PRPH): debt financing — ProPhase Labs enters $1M bridge loan (20% OID) from CEO and investor; issues warrants

ProPhase Labs, Inc.

Each loan (CEO and investor) $500k principal, 20% OID ($625k face), 10% interest, 12-month maturity.
Company issued 500,000 unvested warrants per loan (1M total) at $0.60/share, vesting conditional on shareholder approval.
Loans secured but subordinate to up to $6M senior debt; proceeds for working capital; repayment via Nebula Genomics sale or Crown Medical collections.
CEO loan is related-party transaction; Audit Committee approved; Karkus receives $10,000 expense reimbursement.

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 and an unaffiliated investor at 10% maturing twelve (12) months from the execution date.

Instrument: loan
Principal: $500,000
Counterparty: Ted Karkus and an unaffiliated investor
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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ProPhase Labs, Inc. filing history →

Source: SEC EDGAR

accession 0001641172-25-016815

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