Anebulo Pharmaceuticals, Inc. (ANEB) has disclosed a new risk, in the Debt & Financing category.
Anebulo Pharmaceuticals, Inc. has undertaken a significant risk by securing a debt facility with 22NW and JFL, pledging nearly all of its assets as collateral. As per the terms of the Loan and Security Agreement (LSA), should the company default, the lenders would hold first-priority claims, granting them rights to Anebulo’s assets, potentially leading to insolvency or bankruptcy. This scenario could result in substantial losses for shareholders due to the prioritization of lenders’ claims. Moreover, the issuance of additional shares as consideration for the LSA could further dilute existing stockholder equity.
Overall, Wall Street has a Moderate Buy consensus rating on ANEB stock based on 1 Buy.
To learn more about Anebulo Pharmaceuticals, Inc.’s risk factors, click here.
