Company: XAIR
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001493152-25-006903
Chunk: 11

Company: Beyond Air, Inc.
Filing Date: 2025-02-14
Form: 424B5
Chunk 11
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 adversely impact our ability to raise capital on acceptable terms or at all. Delisting from Nasdaq could also have other negative results, including the potential loss of confidence by our current or prospective third-party providers and collaboration partners, the loss of institutional investor interest, and fewer licensing and partnering opportunities. In the event of a delisting, we expect to take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide no assurance that any such action would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with Nasdaq’s listing requirements.

If our common stock were no longer listed on Nasdaq, investors might only be able to trade on one of the OTC markets. There is no assurance, however, that prices for our common stock would be quoted on one of these other trading systems or that an active trading market for our common stock would exist, which would materially and adversely impact the market value of our common stock and your ability to sell our common stock.

Our failure to comply with the covenants or other terms of an outstanding loan agreement, including as a result of events beyond our control, could result in a default under the loan agreement that could materially and adversely affect the ongoing viability of our business.

On November 1, 2024, we entered into a loan and security agreement (the “Loan Agreement”) for a secured loan with certain lenders including our Chief Executive Officer and Chairman Steven Lisi and director Robert Carey. The Loan Agreement provides for a $11,500,000 loan. The loan bears interest at a rate per annum (subject to increase during an event of default) equal to 15% of which 3% shall be payable in cash and 12% payable in kind through June 30, 2026 and thereafter all in cash. If not earlier repaid in full, the outstanding principal amount of the loan, together with any accrued and unpaid interest, shall be due and payable on October 4, 2034.

The Company’s obligations under the Loan Agreement are secured by substantially all of the Company’s assets. The Loan Agreement contains affirmative and negative covenants customary for financings of this type that, among other things, limit the ability of the Company and its subsidiaries to incur additional debtor or pay any dividends. The Loan Agreement also includes events of default customary for financings of this type, in certain cases subject to customary periods