Eyenovia Amends Loan Agreement, Defers Payments Amid ATM Proceeds Arrangement

Eyenovia, Inc. (NASDAQ: EYEN) announced on February 21, 2025, that it has executed a Second Amendment to its existing Loan and Security Agreement, updating certain key terms of the facility originally established on November 22, 2022. The agreement, which is governed in part by an earlier supplement, provides term loans with an aggregate principal of up to $15.0 million. As of the amendment date, the Company’s outstanding balance under the facility stood at $10.3 million in principal and accrued interest.

Under the amended terms, the lenders—including Avenue Capital Management II, L.P. as administrative and collateral agent, along with Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P.—agreed to defer both principal and interest payments through the end of September 2025. Interest on the outstanding principal will continue to accrue at an annual rate equal to the greater of 7.0% or the prime rate as reported in The Wall Street Journal plus 4.45%. The amended maturity date remains November 1, 2025.

A key feature of the Second Amendment ties the repayment schedule to the Company’s at-the-market (ATM) offering program. Under a previously entered Amended and Restated Sales Agreement with Chardan Capital Markets, LLC, proceeds generated from sales pursuant to the ATM program will be applied toward the repayment of the loan. Specifically, until $3 million in aggregate ATM proceeds have been raised, 65% of such proceeds will be remitted to the lenders. Once the Company raises more than $3 million in ATM proceeds, the payment percentage increases to 75%.

Additionally, the amendment grants the lenders the option, starting on April 1, 2025, to convert up to $10 million of the outstanding principal into shares of the Company’s common stock at a conversion price of $1.68 per share. Any shares issued in connection with this conversion will be subject to applicable registration requirements and allocated on a pro rata basis according to each lender’s commitment.

The complete details and legal terms of the Second Amendment are set forth in the filing, which refers to additional documents previously incorporated by reference. The revised agreement is expected to provide Eyenovia with greater financial flexibility in the near term as it continues to leverage its ATM offering program to support operations and growth.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eyenovia’s 8K filing here.

About Eyenovia

Eyenovia, Inc, an ophthalmic technology company, engages in the development of therapeutics based on its proprietary microdose array print platform technology. The company's product candidates include MicroPine, which is in Phase III clinical development program with indications for pediatric myopia progression (near-sightedness); MicroLine, which is in Phase III clinical development program with indications for the improvement in near vision in people with presbyopia; and Mydcombi, which is in Phase III clinical development program with indications for pharmaceutical mydriasis.