Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1209

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 2
Chunk 1209
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entered into a securities purchase agreement (the “Securities Purchase Agreement II”) with certain institutional and accredited
investors, including certain directors and officers of the Company. Pursuant to the purchase agreement, the Company sold to the investors
in a private placement offering, (i) an aggregate of 24,999,999 shares of Common Stock”, at a purchase price of $0.5043 per Share,
(ii) pre-funded warrants to purchase up to 15,848,712 shares of common stock at a purchase price of $0.5042 per pre-funded warrant and
(iii) warrants to purchase up to 40,848,711 shares of common stock, for aggregate for gross proceeds of $20.6 million (which includes
$2.0 million from related parties). Each share and each pre-funded warrant was sold with an accompanying common warrant to purchase one
share of common stock. The pre-funded warrants have an exercise price of $0.0001 per share, and the common warrants have an exercise price
of $0.3793 per share. Members of the Board of Directors and certain executives of the Company are considered related parties to this offering.
The offering closed on December 31, 2024. The Company received net proceeds of $18.9 million after deductions for placement agent commissions
and other offering costs of $1.4 million and $0.3 million, respectively. (See Note 4 to our financial statements for the fiscal year ended
March 31, 2025).

In addition, Beyond Air and Avenue
Capital Management II, L.P., Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. (“collectively,
Avenue Capital”) reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85
million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from October 1, 2024 through
June 30, 2026 of $12.0 million. In connection with this agreement $5.0 million was paid on September 27, 2024 in partial settlement. The
Company remeasured the fair value of the derivative liability to $0 at September 30, 2024 as Avenue Capital did not exercise the conversion
right related to the loan agreement prior to the extinguishment of the loan agreement and the conversion price exceeded the fair market
value of the underlying securities. The final $12.85 million