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Item 2.03
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Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
of a Registrant
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Term Loan
On March 23, 2020 (the “Issue Date”),
Bionik Laboratories Corp. (the “Company”) borrowed $2,000,000 (the “Loan”) from Celeste Management (the
“Lender”), an existing stockholder and lender of the Company, evidenced by a promissory note (the “Note”).
The Company is also seeking to borrow an additional up to $2,000,000 on substantially similar terms to the Note, by May 23, 2020,
pursuant to the terms of the Note.
The principal amount of the Loan will be
payable on the earlier of (the “Maturity Date”): (i) March 31, 2022 and (ii) the date of receipt of a minimum of US$5,000,000
from a Subsequent Financing (as defined in the Note).
The Note bears interest at a fixed rate
of 1% per month, computed based on a 360-day year of twelve 30-day months. One-half of the accrued interest shall be payable on
each three month anniversary of the Issue Date, and one-half of the accrued interest shall be payable on the Maturity Date. Notwithstanding
the foregoing, the quarterly payments shall be payable in cash commencing on the six month anniversary of the Issue Date (or the
nine month anniversary of the Issue Date if as of such six month anniversary the World Health Organization or a corresponding government
or government agency still categorizes or deems COVID-19 or the novel corona virus as a pandemic or outbreak) (the “First
Interest Payment Date”), with the quarterly payments accruing for the first (or first two, as the case may be) interest payment
dates nevertheless being payable, without further interest thereon, pro rata from the First Interest Payment Date through the Maturity
Date. Furthermore, the interest due on the Maturity Date shall be payable, at the option of the Lender, either in cash, or shares
of Company common stock at a price per share equal to the price per share of the Company’s then most recent capital raise
or debt conversion, or any other valuation as agreed in writing between the Lender and the Company.
The Company intends to use the proceeds
from the Loan for the Company’s working capital.
The Note contains customary events of default,
which, if uncured, entitle the lender to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid
interest on, the Note.
Subject to certain exceptions, the Company
shall not enter into any loan that provides for repayment terms senior to the Loan.
The foregoing is a brief description of
the Loan and the material terms of the Note and is qualified in its entirety by reference to the full text of the Note, which is
included as Exhibit 10.1 to this Current Report on Form 8-K and which is incorporated herein by reference.
Convertible Note Offering; Allonge
to Convertible Note
On March 27, 2020, the Company amended
the terms of its existing convertible note offering to extend the maturity date to the earlier of (a) June 30, 2020 (from March
30, 2020) and (b) the consummation of a Qualified Financing (as defined in the convertible note with respect to such offering).
As a result, also on March 27, 2020, the Company and the sole investor in such offering entered into an allonge (the “Allonge”)
dated as of March 30, 2020, to the investor’s convertible promissory note dated September 26, 2019 in the principal amount
of $70,000 (the “Original Note”), to reflect the new maturity date. No other changes were made to the Original Note.
The foregoing is a brief description of
the Allonge and is qualified in its entirety by reference to the full text of the Allonge, which is included as Exhibits 10.2 to
this Current Report on Form 8-K and which is incorporated herein by reference.