Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 177

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 2
Chunk 177
---
 we were permitted to sell up to $9.6 million of shares of common stock pursuant to the
2022 ATM. We will remain subject to the “baby shelf rules” under the Form S-3 registration statement until such time as
our public float exceeds $75.0 million. If shares of our common stock are sold, there is a 3% fee paid to the sales
agent.

On
June 15, 2023, the Company and its wholly owned subsidiary, Beyond Air Ltd. entered into a Loan and Security Agreement (the “LSA”)
with Avenue Capital Management II, L.P., as administrative agent and collateral agent (the “Agent”), Avenue Venture Opportunities
Fund, L.P., a Delaware limited partnership (“Avenue”), and Avenue Venture Opportunities Fund II, L.P, a Delaware limited
partnership (“Avenue 2” and, together with Avenue, the “Lenders”). Also on June 15, 2023, the Company entered
into a Supplement to the LSA (collectively with the Agreement, the “Loan Agreement”) with the Agent and the Lenders for senior
secured term loans, with $17.5 million advanced upon entry into the LSA. On December 31, 2024 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 final $12.85million
was paid on October 4, 2024. Avenue Capital invested $3.35 million in the Securities Purchase Agreement II at the same terms and conditions
as all other investors.

On
September 27, 2024, we entered into a binding term sheet for a secured loan with certain lenders including our Chief Executive Officer
Steven Lisi and director Robert Carey. The term sheet was approved by each of our independent and disinterested directors, following
the receipt of a recommendation from an independent investment bank. The term sheet provides for the following expected terms: (i)