RE: Oxford Financing from Annual Report24 Jun 2022 13:48
Could this be anything to do with the suspension?
Pg 28: Availability of finance.
On 29 July 2021, certain members of the Group entered into a loan and security agreement with Oxford Finance Luxembourg S.À R.L. and the loan is secured by substantially all of the assets of those members of the Group (including shares of certain subsidiaries in 4D pharma plc). The loan and security agreement and related security documentation contain customary representations and warranties and affirmative
covenants and also contain certain restrictive covenants. The loan and security agreement also includes a financial covenant that requires
the Company to maintain a minimum amount of cash in bank accounts that are subject to a control agreement in favor of the lender if the
Company does not achieve a certain equity raise threshold. The loan and security agreement also contains customary events of default. If we fail to comply with all such covenants, payments or other terms of the agreement, our lender could declare an event of default, which would give it the right to cancel any undrawn commitments and declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. In addition, our lender would have the right to proceed against the assets we provided as collateral pursuant to the loan and security agreement. If the debt under the loan and security agreement were accelerated, we may not have sufficient cash or be able to sell sufficient assets to repay this debt, which would harm our business and financial condition.
I Hope Not
BB
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