Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP), a biopharmaceutical company with a market capitalization of $24.67 million, has entered into a material definitive agreement with YA II PN, LTD, securing a convertible promissory note of $1.1 million, according to a filing with the Securities and Exchange Commission today. According to InvestingPro analysis, the company currently trades near its Fair Value, despite showing high price volatility.
The note, bearing an 8% annual interest rate, can escalate to 18% in the event of default. It is set to mature on December 31, 2025. Yorkville, the note holder, may convert the note into common stock at a price lower than the fixed price of $20.00 or 95% of the lowest daily VWAP in the 5 days before conversion, subject to a $1.00 floor price per share. This financing comes at a critical time, as InvestingPro data shows the company's current ratio stands at 0.4, indicating its short-term obligations exceed liquid assets.
In the event of an Amortization Event, Coeptis will make monthly payments starting either 7 trading days post the occurrence or six months from the issuance date. The payments will include a principal amount and a 5% payment premium. This obligation ceases if the company's stock trades above 110% of the floor price for a consecutive week or if the Exchange Cap is no longer applicable due to shareholder approval to increase common shares.
Coeptis has the option to redeem the note early, subject to a 5% prepayment premium and a ten trading day notice, provided the common stock's VWAP is below the fixed price.
An Amortization Event is triggered if the stock's daily VWAP falls below the floor price for a specified period or if the company issues more than 99% of the common shares available under the Exchange Cap.
Additionally, Coeptis announced the closing of its Series A Preferred Stock issuance, raising approximately $10 million. Investors in this round, including board member Christopher Calise, received a 13.91% non-voting equity interest in SNAP Biosciences Inc. and GEAR Therapeutics Inc., two of Coeptis's subsidiaries.
The stock has shown strong momentum, with a 77% return over the past six months. InvestingPro subscribers can access 8 additional key insights about Coeptis's financial health and market performance.
In other recent news, Coeptis Therapeutics has reported securing $1.7 million from five new clients for its NexGenAI Affiliates Network platform, marking the initial success of the company's AI-driven marketing solutions in the biopharma industry. The company also announced a 1-for-20 reverse stock split, aiming to meet the Nasdaq Capital Market's minimum bid price requirement. According to analyses by InvestingPro, Coeptis faces challenges with short-term liquidity.
In addition to these developments, Coeptis has launched a new division, Coeptis Technologies, targeting the data security sector. The company has also expanded its license agreement with Deverra Therapeutics for the use of unmodified natural killer cells for pandemic preparedness and emergency use.
Despite facing financial challenges and retracting its financial statements for several periods in 2023 and 2024 due to accounting errors, Coeptis has appointed Astra Audit & Advisory, LLC as its new independent registered public accounting firm.
Lastly, the company secured an extension to remain listed on the Nasdaq until January 15, 2025, contingent on compliance with the minimum bid price requirement.
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