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

Market Context

This announcement detailed a new $18.4 million non-convertible note, an expected $17 million in net ...

Analysis

This announcement detailed a new $18.4 million non-convertible note, an expected $17 million in net proceeds, and an extension of the Existing Note’s maturity to December 31, 2026. The company planned to reduce the existing balance to about $10.8 million, while the new note, with a 9.5% minimum interest rate, matures on June 16, 2027. Investors may track future financing activity, debt service capacity, and progress in the underlying biopharmaceutical programs.

Key Figures

New Note amount: $18.4 million Net proceeds: $17 million Remaining Existing Note balance: $10.8 million +4 more

7 metrics

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

Net proceeds $17 million Expected net proceeds after original issue discount

Remaining Existing Note balance $10.8 million Principal and interest remaining after partial paydown

Existing Note maturity December 31, 2026 Extended maturity date of Existing Note

New Note maturity June 16, 2027 Maturity date of New Note

Interest rate floor 9.5% per annum Minimum interest rate on New Note

Interest rate formula Prime Rate + 3% Stated interest rate on New Note

Key Terms

convertible note, non-convertible, unsecured note, original issue discount, +2 more

6 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.

non-convertible financial

"issuance of a new non-convertible, unsecured note with Atlas Sciences, LLC"

A non-convertible security is a debt or preferred share that cannot be exchanged for a company’s common stock or another class of shares. For investors this matters because it offers a more predictable stream of income and no upside from equity appreciation—think of it as a fixed lease payment rather than a pie that can grow in size—while also avoiding the risk of dilution to existing shareholders.

unsecured note financial

"issuance of a new non-convertible, unsecured note with Atlas Sciences, LLC"

An unsecured note is a loan-like promise to repay money that is not backed by specific assets as collateral; if the borrower defaults, holders must compete with other creditors for whatever is left. Investors care because unsecured notes usually pay a higher interest rate to compensate for greater risk, and in a bankruptcy they have a lower chance of full recovery compared with secured debt — like lending to someone without holding their car as security.

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.

principal financial

"leaving approximately $10.8 million of principal and interest remaining on the Existing Note"

Principal is the core sum of money at stake — the original amount invested, loaned, or still owed on a debt — and can also mean the main party involved in a transaction. Think of it as the seed from which interest, gains or losses grow: it determines how much interest accrues, how much must be repaid, and how big an investor’s exposure or claim is in a deal, so it directly affects returns and risk.

prime rate financial

"The New Note 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. How Rhea-AI works. Not financial advice.

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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.