Bankruptcy: Medicine Man Technologies, Inc.

Form Type: 8-K

Filing Date: 2025-03-13

Corporate Action: Bankruptcy

Type: Update

Accession Number: 000110465925023533

Filing Summary: On March 3, 2025, PBS Holdco, LLC, a subsidiary of Medicine Man Technologies, Inc., failed to make a quarterly principal payment of approximately $0.3 million and a quarterly interest payment of $0.4 million due under a loan agreement. Following this default, the company received a notice from the lender indicating that an automatic event of default occurred due to the non-payment. A five-day grace period for the missed interest payment was provided, which extended through March 10, 2025. If the company fails to make the payment within this period, it will constitute an event of default as per the loan agreement. Consequently, default interest at a rate of 19% began to accrue from March 3, 2025, with the balance due under the loan agreement reaching approximately $11 million. The collateral agent exercised control over certain bank accounts of the borrowers and swept approximately $1.5 million following the default, as allowed under the agreement.

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