Outlook Therapeutics Announces New $18.4 Million Non-Convertible Note Financing and Amendment to Existing Convertible Note

Rhea-AI Summary

Outlook Therapeutics (Nasdaq: OTLK) announced an amendment and a new financing on March 16, 2026. The company extended the Avondale convertible note maturity to Dec 31, 2026 and issued an $18.4 million non-convertible unsecured note to Atlas Sciences.

Outlook expects $17.0 million net proceeds after original issue discount, will use proceeds to pay down the Existing Note leaving ~$10.8 million of principal and interest, and the New Note matures on June 16, 2027 with interest = Prime + 3% (minimum 9.5% per annum).

Positive

• Net proceeds of $17.0 million
• Reduces Existing Note balance to approximately $10.8 million
• Extension of Existing Note maturity to Dec 31, 2026

Negative

• New Note carries a high minimum interest rate of 9.5% per annum
• New financing is unsecured and non-convertible, limiting equity relief
• Remaining debt (~$10.8 million) still due under Existing Note

Key Figures

New Note principal: $18.4 million Net proceeds: $17 million Remaining Existing Note: $10.8 million +5 more

8 metrics

New Note principal $18.4 million Principal amount of new non-convertible, unsecured note

Net proceeds $17 million Expected net proceeds after original issue discount from New Note

Remaining Existing Note $10.8 million Approximate principal and interest remaining after partial paydown

Minimum interest rate 9.5% per annum Floor interest rate on New Note (Prime Rate plus 3%)

Existing Note maturity December 31, 2026 Extended maturity date of existing convertible note

New Note maturity June 16, 2027 Maturity date of new non-convertible note

Quarterly net loss $23.1 million Net loss for quarter ended December 31, 2025 (10-Q)

Cash balance $8.7 million Cash and cash equivalents as of December 31, 2025 (10-Q)

Market Reality Check

Price: $0.3940 Vol: Volume 1,946,462 vs 20-da...

high vol

$0.3940 Last Close

Volume Volume 1,946,462 vs 20-day average 1,179,086 (relative volume 1.65x) signals elevated trading interest ahead of this financing. high

Technical Shares at 0.394 are trading below the 200-day MA of 1.38 and sit close to the 0.3801 52-week low, far from the 3.39 52-week high.

Peers on Argus

Peer moves appear mixed: among close biotech peers, PSTV and FBIOP were down, VR...

3 Up 1 Down

Peer moves appear mixed: among close biotech peers, PSTV and FBIOP were down, VRCA and RADX were modestly lower, while CALC showed gains. Momentum scanner data also shows both up and down moves across CALC, RADX, ANVS and PSTV, suggesting stock-specific factors for OTLK rather than a unified sector move.

Historical Context

5 past events · Latest: Mar 05 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 05	FDA meeting update	Negative	-4.1%	Type A FDA meeting update following Complete Response Letter for ONS-5010.
Feb 19	EU distribution deal	Positive	+6.1%	Exclusive Swiss distribution agreement for LYTENAVA with Mediconsult AG.
Feb 17	Earnings and update	Negative	-13.8%	Q1 FY2026 loss and regulatory update following FDA Complete Response Letter.
Feb 11	CRL response filing	Negative	+11.5%	Type A meeting request to FDA after Complete Response Letter for ONS-5010.
Jan 06	Executive appointment	Positive	-2.4%	Appointment of a new VP of Corporate Strategy and Business Development.

Pattern Detected

Recent news often produced price moves consistent with the apparent tone of the announcements, though there are notable divergences where positive corporate updates were followed by declines and a negative regulatory backdrop occasionally coincided with a gain.

Recent Company History

Over the last few months, Outlook Therapeutics has navigated significant regulatory and financial milestones. Multiple updates around FDA interactions and a Complete Response Letter for ONS-5010/LYTENAVA, including a Type A meeting on Dec 30, 2025, framed the U.S. regulatory path. Commercial progress included a Swiss distribution agreement and European launches for LYTENAVA. Financially, Q1 FY2026 results featured a substantial $23.1M net loss and going-concern language. Today’s new note financing fits into this pattern of balance sheet management amid ongoing regulatory work.

Market Pulse Summary

This announcement extends Outlook Therapeutics’ financing runway by amending the existing convertibl...

Analysis

This announcement extends Outlook Therapeutics’ financing runway by amending the existing convertible note to mature on December 31, 2026 and adding a new $18.4M non-convertible note that yields $17M in net proceeds. A portion pays down the prior note, leaving about $10.8M outstanding, while the new debt carries a minimum 9.5% interest rate. Investors may watch future cash balances, debt levels, and FDA interactions around ONS-5010 as key markers.

Key Terms

convertible note, original issue discount, prime rate

3 terms

convertible note financial

"announced an amendment to its existing convertible note with Avondale Capital, LLC"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

original issue discount financial

"expects to receive $17 million in net proceeds, after original issue discount"

Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.

prime rate financial

"bears interest at a rate equal to the Prime Rate plus 3%"

The prime rate is the interest rate banks typically charge their most creditworthy customers for short-term loans and serves as a common baseline for many other interest rates. Think of it as a price tag for borrowing: when the prime rate rises, costs for business loans, mortgages and consumer credit usually go up, which can slow spending, squeeze profits and influence stock prices and interest-sensitive sectors.

AI-generated analysis. Not financial advice.

ISELIN, N.J., March 16, 2026 (GLOBE NEWSWIRE) -- Outlook Therapeutics, Inc. (Nasdaq: OTLK), a biopharmaceutical company focused on enhancing the standard of care for bevacizumab for the treatment of retina diseases, today announced an amendment to its existing convertible note with Avondale Capital, LLC (the “Existing Note”) and the issuance of a new non-convertible, unsecured note with Atlas Sciences, LLC (the “New Note”).

Under the amendment to the Existing Note, the maturity date of the Existing Note has been extended to December 31, 2026, with no other changes to the terms. The lender has confirmed that the Existing Note is not in default.

In addition, Outlook Therapeutics entered into the $18.4 million New Note. The Company expects to receive $17 million in net proceeds, after original issue discount. Proceeds from the New Note will be used to pay down a portion of the Existing Note, reducing the balance and leaving approximately $10.8 million of principal and interest remaining on the Existing Note.

The New Note bears interest at a rate equal to the Prime Rate plus 3%, subject to a minimum interest rate of 9.5% per annum, and matures on June 16, 2027.

About Outlook Therapeutics, Inc.

Outlook Therapeutics is a biopharmaceutical company focused on the development and commercialization of ONS-5010/LYTENAVA™ (bevacizumab-vikg, bevacizumab gamma) to enhance the standard of care for bevacizumab for the treatment of retina diseases. LYTENAVA™ (bevacizumab gamma) is the first ophthalmic formulation of bevacizumab to receive European Commission and MHRA Marketing Authorization for the treatment of wet AMD. Outlook Therapeutics commenced commercial launch of LYTENAVA™ (bevacizumab gamma) in Germany, Austria, and the UK as a treatment for wet AMD.

In the United States, ONS-5010/LYTENAVA™ (bevacizumab-vikg) is investigational. If approved in the United States, ONS-5010/LYTENAVA™, would be the first approved ophthalmic formulation of bevacizumab for use in retinal indications, including wet AMD.

Forward-Looking Statements

This press release contains statements that may or are considered “forward-looking statements”. All statements other than statements of historical facts are “forward-looking statements,” including those relating to future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “expect,” “may,” “on track,” “plan,” “potential,” “target,” “will,” or “would” the negative of terms like these or other comparable terminology, and other words or terms of similar meaning. These include, among others, the expected proceeds from the New Note and the use thereof, the potential of ONS-5010/LYTENAVA™ as a treatment for retina diseases, the potential for ONS-5010 to receive approval from the FDA, and other statements that are not historical fact. Although Outlook Therapeutics believes that it has a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting Outlook Therapeutics and are subject to risks, uncertainties, and factors relating to its operations and business environment, all of which are difficult to predict and many of which are beyond its control. These risk factors include those risks associated with developing and commercializing pharmaceutical product candidates, risks in obtaining necessary regulatory approvals, the content and timing of decisions by regulatory bodies, as well as those risks detailed in Outlook Therapeutics’ filings with the Securities and Exchange Commission (the SEC), including the Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on December 19, 2025, as supplemented by future reports Outlook Therapeutics files with the SEC, which include uncertainty of market conditions and future impacts related to macroeconomic factors, including as a result of the global geopolitical conflict, tariffs, and trade tensions, fluctuations in interest rates and inflation, and potential future bank failures on the global business environment. These risks may cause actual results to differ materially from those expressed or implied by forward-looking statements in this press release. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Outlook Therapeutics does not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

Investor Inquiries:
Jenene Thomas
Chief Executive Officer
JTC Team, LLC
T: 908.824.0775

FAQ

How much net cash will Outlook Therapeutics (OTLK) receive from the March 16, 2026 financing?

Outlook Therapeutics expects $17.0 million in net proceeds from the New Note. According to the company, that figure is after the original issue discount and reflects the proceeds available to pay down existing indebtedness.

What happens to the Avondale convertible note after Outlook Therapeutics' amendment on March 16, 2026?

The Avondale Existing Note maturity was extended to Dec 31, 2026 with no other term changes. According to the company, the lender confirmed the Existing Note is not in default.

What are the key terms of the $18.4 million New Note for OTLK issued March 16, 2026?

The New Note is $18.4 million, non-convertible, unsecured, and matures on June 16, 2027. According to the company, interest equals Prime Rate plus 3% with a minimum 9.5% per annum.

How will the $17.0 million net proceeds be used by Outlook Therapeutics (OTLK)?

Proceeds will be used to pay down part of the Existing Note, leaving roughly $10.8 million of principal and interest outstanding. According to the company, this reduces the outstanding balance but does not retire the debt fully.

Does the New Note issued March 16, 2026 cause equity dilution for OTLK shareholders?

No, the New Note is non-convertible so it does not directly dilute equity. According to the company, the instrument is unsecured and lacks conversion features that would create new shares.