The US Bankruptcy Court gave an order to Molekule Group, Inc. to obtain DIP financing on an interim basis on October 5, 2023. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $1 million out of $3 million from Foundry Group Next, L.P., Armistice Capital Master Fund, Ltd. and Bridge Coast Capital, LLC with Bridge Coast Capital, LLC acting as the administrative agent. The DIP loan would carry an interest rate of 10% p.a., along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature on the effective date of the plan. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing shall be scheduled for October 25, 2023.