On September 6, 2024, Heart Test Laboratories, Inc., a Texas-based company, entered into a significant financial agreement with Streeterville Capital, LLC, an accredited investor. The agreement involved the issuance of an unsecured promissory note to Heart Test Laboratories for $2,510,000, which includes an original issue discount of $500,000 and $10,000 for transaction expenses. The note carries an 8.5% annual interest rate and is set to mature 18 months post-issuance. Streeterville has the option to redeem up to $270,000 per month starting six months after the note's issuance. If Heart Test Laboratories fails to reduce the note's outstanding balance by at least $900,000 by the 12-month anniversary, the balance will automatically increase by 5%. The company may prepay the balance at any time, subject to the agreement...Show More

On September 6, 2024, Heart Test Laboratories, Inc., a Texas-based company, entered into a significant financial agreement with Streeterville Capital, LLC, an accredited investor. The agreement involved the issuance of an unsecured promissory note to Heart Test Laboratories for $2,510,000, which includes an original issue discount of $500,000 and $10,000 for transaction expenses. The note carries an 8.5% annual interest rate and is set to mature 18 months post-issuance. Streeterville has the option to redeem up to $270,000 per month starting six months after the note's issuance. If Heart Test Laboratories fails to reduce the note's outstanding balance by at least $900,000 by the 12-month anniversary, the balance will automatically increase by 5%. The company may prepay the balance at any time, subject to the agreement's terms. The agreement also includes default provisions that could lead to an automatic increase in the outstanding balance to the lesser of 18% or the maximum rate permitted by law. Heart Test Laboratories has engaged Maxim Group LLC and Ascendiant Capital Markets, LLC as placement agents for the transaction, receiving a commission of 7% of the gross proceeds. The net cash proceeds, amounting to $1,860,000, are intended for general working capital purposes. The full details of the Note Purchase Agreement and the Streeterville Note are included in the company's filings with the SEC.