Company: PIII
Filing Date: 2025-02-18
Form Type: 8-K
Source: 0001628280-25-005930
Chunk: 1

Company: P3 Health Partners Inc.
Filing Date: 2025-02-18
Form: 8-K
Item: Item 1.01
Chunk 1
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 of certain asset sales, and VBC 4 has the right to demand payment in full upon (i) a “ Change of Control” of the Company and (ii) certain “ Qualified Financings” (each as defined in the Promissory Note).

The Promissory Note restricts P3 LLC’s ability and the ability of its subsidiaries to, among other things, incur indebtedness and liens, and make investments and restricted payments. The maturity date may be accelerated as a remedy under certain default provisions in the Promissory Note, or in the event a mandatory prepayment event occurs.

Pursuant to the Promissory Note, P3 LLC will pay VBC 4 on the Effective Date an up-front fee of 1.5% of $30.0 million, the maximum draw amount. In addition, P3 LLC will pay VBC 4 a back-end fee at the time the loans issued under the Promissory Note are repaid as follows: (i) if repaid prior to March 31, 2025, 2.25% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; (ii) if repaid from April 1, 2025 through June 30, 2025, 4.5% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; (iii) if repaid from July 1, 2025 through September 30, 2025, 6.75% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; and (iv) if repaid on October 1, 2025 or later, 9.0% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date.

P3 LLC intends to use the proceeds of the Promissory Note to fund the Company’s ongoing working capital requirements.

Warrants

In connection with the Promissory Note, on February 13, 2025, P3 LLC, the Company and VBC 4 entered into a Warrant Agreement (the “ Warrant Agreement”). Pursuant to the Warrant Agreement, P3 LLC issued Warrants to VBC 4 to purchase 71,406,480 shares of Common Stock, at an exercise price of $0.2068 per share. Each Warrant will be exercisable only following Company stockholder approval of the issuance of