--- title: "BioXcel amends its credit agreement and forms a strategic process committee" url: "https://aibio.space/news/bioxcel-amends-credit-agreement-forms-strategic-process-committee/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-07-06" section: "Debt Financing" tickers: "OTC:BTAIQ" source: "https://www.sec.gov/Archives/edgar/data/1720893/000110465926080501/tm2619779d1_8k.htm" summary: "The Tenth Amendment, entered July 3, 2026, defers a principal payment to July 31, 2026, lowers the minimum liquidity covenant to $7.5 million and requires" --- By the aibio.space news desk. Sources - [BioXcel Therapeutics, Inc. 8-K (2026-07-06)](https://www.sec.gov/Archives/edgar/data/1720893/000110465926080501/tm2619779d1_8k.htm) - [BioXcel Therapeutics, Inc. financial data (SEC XBRL)](https://www.sec.gov/Archives/edgar/data/1720893/000110465926036214/) [BTAIQ](https://aibio.space/companies/bioxcel-therapeutics-btaiq/) 2026-07-06 # BioXcel amends its credit agreement and forms a strategic process committee Tickers [BTAIQ](https://aibio.space/companies/bioxcel-therapeutics-btaiq/) The Tenth Amendment, entered July 3, 2026, defers a principal payment to July 31, 2026, lowers the minimum liquidity covenant to $7.5 million and requires definitive agreements by that date. ## Key facts - **Company**: BioXcel Therapeutics, Inc. (OTC: BTAIQ) - **News type**: Debt Financing - **Primary source**: [BioXcel Therapeutics, Inc. 8-K (2026-07-06)](https://www.sec.gov/Archives/edgar/data/1720893/000110465926080501/tm2619779d1_8k.htm) *Two people shaking hands across a table. Photo: Kristin Hardwick, CC0, via StockSnap. The picture shows the field, not the companies named.* BioXcel Therapeutics, Inc. entered into a Tenth Amendment to its Credit Agreement and Guaranty on July 3, 2026, according to a current report on Form 8-K filed July 6, 2026. The amendment amends the Credit Agreement and Guaranty dated April 19, 2022, as amended. The company is the borrower, certain subsidiaries are subsidiary guarantors, and Oaktree Fund Administration LLC acts as administrative agent. ## The three changes to the loan terms The lenders agreed to three changes. First, they agreed to payment in kind of accrued and unpaid interest through and including June 30, 2026, by capitalizing that interest and adding it to the outstanding principal of the loans as of that date. Second, they deferred the principal originally due on June 30, 2026 until July 31, 2026. At that point the company must pay $9,016,914.47, which the report describes as the principal and interest due on June 30, 2026, plus all accrued interest and fees on that amount through and including July 31, 2026. Third, they reduced the minimum liquidity covenant to require minimum cash liquidity of $7.5 million, instead of $12.5 million. The company paid the lenders a fee equal to 100 basis points, or 1.00%, of the principal outstanding on the effective date of the amendment. The fee was paid in kind by adding it to the principal on that date. The amendment also requires the company, on or prior to July 31, 2026, to enter into definitive agreements for one or more transactions acceptable to the lenders. Those transactions must either repay all loan and other obligations under the credit agreement or be an alternative capital solutions transaction on terms the lenders accept. ## The strategic process committee and reporting The company agreed to establish and maintain a strategic process committee of its board of directors. The report says the committee will consist solely of David Mack, or another independent director acceptable to the lenders who is not a board member as of the effective date. The committee has full and exclusive authority to evaluate, negotiate, oversee, coordinate and implement any sale, restructuring or other material transaction, including an equity raise, a sale or business combination, an out-of-court or in-court restructuring, a bankruptcy or insolvency filing, or a similar transaction. The company also accepted new reporting terms. It must hold a weekly meeting with the lenders and the company's financial advisors, and deliver a 13-week cash flow budget and financial report to the lenders on a bi-weekly basis. Disbursements for any two-week period may not exceed 115% of the aggregate budgeted amount of disbursements for that period. Several negative covenants apply from the effective date. Subject to limited exceptions, the company may not pay dividends or repurchase equity, make investments, dispose of or license assets, or incur indebtedness or liens. Through July 31, 2026, it also may not change compensation arrangements with directors, officers or employees. ## Financial position from the annual report The annual report data show revenue of $642,000 for the fiscal year ended December 31, 2025, compared with $2.3 million for 2024. Research and development expense was $30.3 million in 2025 and $30.4 million in 2024. The net loss was $69.9 million in 2025 and $59.6 million in 2024. Cash from operations was negative $57.6 million in 2025 and negative $72.0 million in 2024. Year-end cash and cash equivalents were $29.9 million as of December 31, 2024, according to the 10-K filed March 27, 2026. ## The risks ahead BioXcel must pay $9,016,914.47 plus accrued interest and fees on July 31, 2026, and by that date it must sign definitive agreements that either repay the loans or are an alternative capital solutions transaction the lenders accept. The report does not say what happens if it does not. The new committee can consider a sale, a restructuring or a bankruptcy filing. The annual report data show a 2025 net loss of $69.9 million, cash used in operations of $57.6 million and revenue of $642,000. Accrued interest through June 30 was added to principal, and the budget limits and weekly lender meetings narrow the company's room to act. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story BTAIQ BioXcel Therapeutics, Inc. 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Cite as: aibio.space, "BioXcel amends its credit agreement and forms a strategic process committee", 2026-07-06, https://aibio.space/news/bioxcel-amends-credit-agreement-forms-strategic-process-committee/