ProPhase Labs enters $2,085,000 secured loan
ProPhase Labs, Inc. entered into a senior secured convertible loan agreement with J.J.
Rhea-AI Filing Summary
ProPhase Labs, Inc. entered into a senior secured convertible loan agreement with J.J. Astor & Co. on July 31, 2026. The loan has an original principal amount of $2,085,000, provided in exchange for funding of $1,500,000 before agreed fees, reserves and other amounts.
The company received net proceeds of $1,020,000 at closing. The loan is payable in weekly installments and matures in accordance with the terms of the Loan Agreement, which also includes customary representations, covenants and events of default. The transaction is reported as a direct financial obligation, with the Loan Agreement and related note form filed as exhibits.
Positive
- None.
Negative
- None.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Loan principal: $2,085,000
Loan funding amount: $1,500,000
Net proceeds at closing: $1,020,000
3 metrics
Loan principal
$2,085,000
Original principal amount of senior secured convertible loan with J.J. Astor & Co.
Loan funding amount
$1,500,000
Funding provided in exchange for the loan before fees, reserves and other amounts.
Net proceeds at closing
$1,020,000
Cash received by ProPhase Labs at closing under the Loan Agreement.
Key Terms
senior secured convertible loan, material definitive agreement, events of default, direct financial obligation, +1 more
5 terms
senior secured convertible loan financial
"providing for a senior secured convertible loan in the original principal amount of $2,085,000"
material definitive agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
events of default financial
"The Loan Agreement contains customary representations and warranties, affirmative and negative covenants, and events of default."
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
direct financial obligation regulatory
"Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement"
weekly installments financial
"The loan is payable in weekly installments and matures in accordance with the terms set forth"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What financing agreement did ProPhase Labs (PRPH) enter on July 31, 2026?
ProPhase Labs entered a Loan Agreement with J.J. Astor & Co. for a senior secured convertible loan. The loan carries $2,085,000 in original principal and is structured with weekly installment payments and standard covenants and events of default.
What is the principal amount of the new ProPhase Labs (PRPH) loan?
The new senior secured convertible loan for ProPhase Labs has $2,085,000 in original principal. This principal was issued in exchange for $1,500,000 in funding before agreed fees, reserves and other deductions specified in the Loan Agreement.
How much cash did ProPhase Labs (PRPH) receive from the J.J. Astor & Co. loan?
ProPhase Labs received net proceeds of $1,020,000 at closing under the Loan Agreement. This amount reflects the $1,500,000 funding less agreed fees, reserves and other amounts described in the senior secured convertible loan terms.
Who is the lender in ProPhase Labs (PRPH) new senior secured convertible loan?
The lender for ProPhase Labs’ new senior secured convertible loan is J.J. Astor & Co.. The agreement establishes J.J. Astor & Co. as the counterparty providing $1,500,000 in funding against $2,085,000 principal, subject to customary covenants and default provisions.
How will ProPhase Labs (PRPH) repay the new loan from J.J. Astor & Co.?
The senior secured convertible loan is payable in weekly installments and matures as detailed in the Loan Agreement. Repayment terms are combined with customary representations, affirmative and negative covenants, and defined events of default governing the company’s ongoing obligations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
