Beyond Air Secures up to $40 Million Debt Financing

Funding to support the commercialization of LungFit PH and advance the clinical development of high concentration nitric oxide treatment using Beyond Air’s revolutionary LungFit platform technology

GARDEN CITY, N.Y., June 15, 2023 (GLOBE NEWSWIRE) -- Beyond Air, Inc. (NASDAQ: XAIR) (“Beyond Air” or the “Company”), a commercial stage medical device and biopharmaceutical company focused on developing inhaled nitric oxide (NO) for the treatment of patients with respiratory conditions, including serious lung infections and pulmonary hypertension, and, through its affiliate Beyond Cancer, Ltd., ultra-high concentration nitric oxide (UNO) for the treatment of solid tumors, today announced securing a senior secured debt financing of up to $40 million from funds managed by Avenue Capital Group. The term loan provides Beyond Air with funding to support the ongoing commercial launch of LungFit PH and advance clinical development of the LungFit platform.

Avenue Capital Group has agreed to provide the Company with up to $40 million of senior secured term loans funded across three tranches with $17.5 million fully funded at close. The facility has a four-year term from the funding of the first tranche. In addition to certain fees, the Company shall grant the lender warrants to purchase 233,843 shares of common stock. Upon Beyond Air meeting certain milestones, the remaining tranches of $10 million and $12.5 million will be made available, subject to the Company’s discretion, until September 2024 and after April 2024, respectively.

“This transaction immediately strengthens our balance sheet and allows us to continue ramping up our commercial efforts for LungFit PH. We are extremely pleased to have a strong partner in Avenue Capital, which has a strong track record in healthcare and a history with nitric oxide," commented Steve Lisi, Chairman and Chief Executive Officer of Beyond Air. “Additionally, this funding allows for the continued development of our clinical pipeline.”

Chad Norman, Senior Portfolio Manager at Avenue Capital Group, added, “We are impressed with Beyond Air’s technology and its potential to improve the lives of patients who are in need of inhaled nitric oxide. We believe the Company’s convenient, tankless solution is positioned to be a game changer for those living with chronic conditions."   

Key features of the term loan

• $40 million – secured by a first priority lien on Company assets
• Term length: Four years (interest only for up to 36 months)
• Coupon: Greater of 12.00% or WSJ Prime plus 3.75%
• $17.5 million funded at closing (Tranche ‘1’)
• $22.5 million available in 2 tranches, based on meeting certain milestones
• The borrower shall grant Lender 233,843 warrants to purchase shares of Borrower's common stock at a strike price of $5.88

Piper Sandler served as exclusive financial advisor and sole lead arranger to the Company on the transaction.