aibioNuo Therapeutics closes $675,000 interim loan at 12% interest
Tickers AURX
Five lenders, including a director and a holder of more than 5% of the stock, joined the interim tranche. The notes pay 12% interest in warrants rather than cash and mature December 31, 2028.
Key facts
- Company
- Nuo Therapeutics, Inc. (OTC: AURX)
- News type
- Debt Financing
- Primary source
- Nuo Therapeutics, Inc. 8-K (2026-06-03)
The interim loan
Nuo Therapeutics, Inc. entered into an Amended and Restated Loan and Security Agreement on May 29, 2026, with five lenders. The new agreement replaces a Loan and Security Agreement dated January 21, 2026, which the company signed with four of the same lenders. It raises the lenders' aggregate commitment by $400,000, to up to $2.0 million. Of that total, $1,000,000 was funded at the initial closing on January 23, 2026, and $675,000 was funded at the interim closing on May 29, 2026. A further $325,000 may be funded on September 30, 2026, if the company requests it in advance and closing conditions are met. The company intends to use the funds for general working capital purposes. The filing names no placement agent or advisor for the loans.
Scott M. Pittman, a member of the board of directors and a beneficial owner of more than 10% of the common stock, loaned $200,000 in the initial funding and $100,000 at the interim funding. He has committed to lend $100,000 more in a second funding, if one occurs. Paul Anthony Jacobs, a beneficial owner of more than 5% of the common stock, loaned $300,000 initially and $400,000 at the interim funding. The other lenders are an affiliate of an existing distributor of the company's Aurix product and two third parties that are not affiliated with the company.
Rate, warrants and security
The interim notes bear interest at 12% a year. The filing also raises the rate on the initial notes from 10% to 12% at the interim funding. Interest is payable in interest warrants, not cash, issued at maturity or on an earlier prepayment.
The notes are interest only through December 31, 2026, meaning no principal is due before then. Principal is then repayable in cash in equal quarterly installments, starting March 31, 2027, and running to the maturity date of December 31, 2028. The notes are secured by a lien on all of the company's assets, including its intellectual property.
At the interim closing, the company issued each lender warrants in three groups. One is a fee of 0.75% of each lender's revised commitment. Another is a fee of 1.25% of each lender's interim loan amount. The third covers 25% of each lender's interim loan amount. Together these immediately exercisable warrants cover an aggregate 120,125 shares. Warrants for 56,875 shares vest only if a second funding takes place. Prepayment warrants for up to 36,665 shares vest only on a voluntary or mandatory prepayment. Every warrant has an exercise price of $1.50 per share and expires January 23, 2031. The company also cancelled warrants for 105,000 shares that had been issued at the initial funding and had not vested. Interest is also paid in warrants: the company agreed to issue Interest Warrants at maturity, or on earlier prepayment, covering up to 303,667 shares, the maximum interest on the full $2.0 million. Mr. Pittman's interim warrant covers 17,450 shares and Mr. Jacobs's covers 72,000. The warrants carry anti-dilution adjustments and are unregistered.
Prepayment costs and financial position
The company may prepay the notes in full from December 31, 2026. A prepayment before December 31, 2027 carries a fee of 1.5% of the outstanding principal, and no fee applies after that date. The fee is paid in warrants, not cash.
The loans must also be prepaid on three events: an equity financing of at least $5 million, certain changes of control, or a default. For an equity financing or change of control, the fee is 2.75% of principal before December 31, 2026, and 1.5% from that date to December 31, 2027. The default fee is 2.75%. Those fees are also paid in warrants.
The 10-K filed March 30, 2026 reports a net loss of $2.5 million for 2025, against $2.3 million for 2024. It reports cash used in operations of $864,971 for 2025, against $2.2 million for 2024. Year-end cash and cash equivalents were $283,714 at December 31, 2024. The loans total up to $2.0 million, against a 2025 net loss of $2.5 million, and they are secured on all assets and carry interest and fees payable in warrants.