PALATINE, IL – Acura Pharmaceuticals, Inc. (OTC Market: ACUR), a micro-cap pharmaceutical company with a market capitalization of just $0.14 million according to InvestingPro, has entered into a material definitive agreement, securing an additional $100,000 loan from Abuse Deterrent Pharma, LLC (AD Pharma) on Thursday, following a previous loan of $125,000 received on Monday. This move brings the total principal balance owed by Acura to AD Pharma to $7,169,279, with accrued interest of approximately $530,000 as of Thursday, according to a recent 8-K filing with the Securities and Exchange Commission.
The loans, bearing an interest rate of 5.25%, are set to mature on February 28, 2025, at which point all principal and interest will become due. Should Acura fail to meet its payment obligations, the interest rate on overdue amounts will increase to 7.5%. The company has indicated that the financing is critical for maintaining its day-to-day operations.
Acura has also disclosed that without additional financing by early February, it may need to scale back or terminate operations, potentially filing for bankruptcy protection, which could lead to a complete loss of shareholder value. InvestingPro data reveals a concerning Financial Health Score of 1.64, labeled as WEAK, supporting these concerns. The company's ability to continue operations is uncertain, even if further financing is obtained.
AD Pharma, an entity controlled by Mr. Schutte who is also a managing partner and investor, holds approximately 65% of Acura's outstanding common stock. This figure does not include AD Pharma's warrants to purchase an additional 10.0 million shares. As of December 31, 2024, Mr. Schutte directly owns about 13% of Acura's common stock. The stock has experienced extreme volatility, with a dramatic 450% YTD return but a concerning six-month decline of 94.5%, according to InvestingPro data.
In other recent news, Acura Pharmaceuticals has secured additional financing to support its ongoing operations. The company received a $50,000 loan from Abuse Deterrent Pharma (AD Pharma), bringing the total principal balance to $6,944,279 with around $500,000 in accrued interest. This loan carries a 5.25% interest rate and is due in full by February 2025.
In parallel, Acura Pharmaceuticals has amended several agreements to extend financial and development deadlines. The company received loans totaling $200,000 from AD Pharma, adding to its existing debt and bringing the principal balance to $6,719,279 with approximately $463,000 in accrued interest. These loans also carry a 5.25% interest rate.
Moreover, Acura extended the deadline for the Food and Drug Administration's acceptance of a New Drug Application for LTX-03, a product candidate utilizing Acura's LIMITx technology, to February 2025. The maturity date of the aforementioned Amended Note has also been changed to February 2025.
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