Petros Pharmaceuticals Faces Default Event, Forced Partial Repayment of Obligations

Petros Pharmaceuticals, Inc. (NASDAQ:PTPI) encountered a default event, necessitating immediate repayment of outstanding obligations. As outlined in a recent 8-K filing with the Securities and Exchange Commission dated December 10, 2024, the company’s subsidiary, Metuchen Pharmaceuticals LLC, defaulted on a payment due on October 1, 2024, which triggered the acceleration of obligations.

The default event arose from a failure to fulfill the installment payment specified in a Promissory Note, leading to all obligations under the Settlement and Security Agreements to become due and payable. The principal outstanding amount on the Promissory Note as of December 10, 2024, totaled $7,246,634.90, accompanied by accrued interest of $237,300.35 at a default rate of 9% per annum.

To address the default, the Secured Party, as per the Security Agreement, holds a security interest in the Collateral. A Foreclosure Notice issued on December 10, 2024, proposed accepting the Foreclosed Collateral, excluding a Specified License Agreement, to partially satisfy $2,000,000 of the Obligations. This partial repayment does not cover accrued interest or any other outstanding amounts.

Metuchen Pharmaceuticals accepted the terms outlined in the Foreclosure Notice on December 13, 2024, agreeing to the partial repayment proposal. The company’s agreement with the Secured Party signifies a step towards resolving the default event and fulfilling financial obligations.

In line with the disclosure, Petros Pharmaceuticals included the appropriate financial statements and exhibits in the Form 8-K filing. The company continues to navigate the financial implications of the default event and work towards meeting its obligations to stakeholders and creditors in the pharmaceutical sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Petros Pharmaceuticals’s 8K filing here.

Petros Pharmaceuticals Company Profile

Petros Pharmaceuticals, Inc, a pharmaceutical company, focuses on men's health therapeutics in the United States and internationally. It operates through two segments, Prescription Medications and Medical Devices. The company engages in the commercialization and development of Stendra, an PDE-5 inhibitor prescription medication for the treatment of erectile dysfunction (ED).