ZYUS Life Sciences Completes Secured Loan and Note Amendments
ZYUS Life Sciences Corporation Announces Secured Loan Closure
ZYUS Life Sciences Corporation (TSXV: ZYUS), a visionary company in the realm of cannabinoid-based pharmaceuticals, has made a significant stride by closing a CA$1.5 million secured loan. This pivotal financial move signals progress in their commitment to innovation in pain management therapies.
Details of the Secured Loan
The secured loan, known as the "Director Loan," was advanced by an independent director of ZYUS and was completed on October 16, 2025. The financing was disbursed in tranches, which included amounts of CA$200,000, CA$300,000, CA$500,000, and CA$500,000.
Terms and Conditions
This loan is secured by an extensive general security agreement on all assets of ZYUS Inc., a wholly-owned subsidiary. It carries an annual interest rate of 12% and is scheduled to mature on October 31, 2027. Importantly, ZYUS has the flexibility of pre-paying the loan without penalties, enhancing the company's financial maneuverability.
Consideration for the Loan
As part of the agreement, the Director Lender will receive a total of 2,173,913 common share purchase warrants, which are set to expire two years from issuance. Each warrant grants the director the right to acquire a common share at an exercise price of CA$0.69, contingent upon approval by the TSX Venture Exchange.
Potential Additional Financing
Furthermore, the Director Lender has committed to provide an additional CA$500,000 loan by a specified date under the same terms as the initial loan. This anticipated financing will also come with additional warrants, providing further incentive for engagement in ZYUS' progressive strategies.
Amendments to Previous Loan Agreements
In conjunction with the loan agreement, ZYUS announced amendments to a prior secured promissory note, significantly extending its maturity date from December 31, 2025, to December 31, 2027. This adjustment allows for more sustainable debt management while continuing to meet operational goals.
Management and Oversight
The adjustments made to the promissory note are significant; they involve receiving approval from relevant exchange authorities and extend the repayment timeline, reflecting strategic foresight in ZYUS' financial planning.
Future Directions for ZYUS
The proceeds from these financial arrangements will primarily support ZYUS' ongoing clinical research activities, particularly the Phase 2 UTOPIA clinical trial focusing on their leading drug candidate, Trichomylin softgel capsules. This highlights ZYUS’ dedication to not only securing financial backing but also advancing their mission to develop non-opioid pain management solutions.
Investment in Innovative Therapies
ZYUS continues to pave the way in the life sciences sector by investing in research designed to provide effective alternatives for pain relief, thereby improving patients' lives. The company’s strategic initiatives aim to achieve regulatory approval for its innovative formulations, ultimately contributing to a transformative impact in healthcare.
Frequently Asked Questions
What is the purpose of the secured loan?
The secured loan aims to provide funding for ZYUS' clinical research activities and general working capital needs.
What are the terms of the loan?
The loan carries a 12% annual interest rate, is repayable at maturity, and is secured against the assets of ZYUS Inc.
What will ZYUS do with the additional financing?
Additional financing will further enhance ZYUS' clinical trials and bolster its financial stability for future growth opportunities.
How does the loan affect shareholders?
By securing funding, ZYUS strengthens its operational capacity, potentially leading to increased shareholder value through innovative product development.
Is there any risk associated with the loans?
As with all financial arrangements, risks abound, particularly regarding repayment and market conditions, but the company has structured the loans with flexibility for better asset management.
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