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Note 12 - Subsequent Events
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

Note 12.         Subsequent events

 

In January 2023, the Company sold 555,654 shares of common stock under the 2021 Equity Distribution Agreement. For the same period, the Company received total accumulated net proceeds of approximately $6.6 million, including $0.1 million of offering expenses, from these sales.

 

On January 24, 2023, pursuant to the terms of an Asset Purchase Agreement dated August 18, 2022 by and between HESP LLC, the Company’s wholly-owned subsidiary (“HESP”) and Cadrenal Therapeutics, Inc. (“CVKD”), HESP received 600,000 shares of common stock of CVKD upon CVKD’s completion of its initial public offering.

 

On February 1, 2023, Canary Medical Inc. prepaid its outstanding principal balance of $7.5 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Canary Medical Inc.

 

On February 3, 2023, Unagi Inc. (“Unagi”) prepaid $3.2 million of the outstanding principal of its venture loan. The current outstanding principal balance of the Unagi’s venture loan as of the date hereof is $2.1 million. The Company and Unagi also amended the terms of the venture loan to, among other things, provide for payment in kind (PIK) interest and extend the maturity date of the outstanding principal balance of the loan.

 

On February 14, 2023, Embody, Inc. prepaid its outstanding principal balance of $2.5 million on its venture loan, plus interest and end-of-term payment. 

 

On February 20, 2023, the Board unanimously approved a new investment advisory agreement with the Advisor, substantially similar to the existing Investment Management Agreement, subject to stockholder approval and the closing of the sale of the Advisor to an affiliate of Monroe Capital LLC (the “Transaction”). The Company does not anticipate the Transaction will substantially or adversely affect the Company. It is anticipated that all of the officers and investment professionals at the Advisor will remain at the Advisor and that the Advisor and the Company will maintain their venture lending-focused investment strategy.

 

On February 24, 2023, the Company funded a $5.0 million debt investment to an existing portfolio company, BriteCore Holdings, LLC.

 

On February 24, 2023, the Company funded a $20.0 million debt investment to a new portfolio company, Noodle Partners, Inc.