The US Bankruptcy Court approved the modified first amended plan of reorganization of Molekule Group, Inc. on February 5, 2024. The debtor has filed its modified first amended plan in the Court on December 20, 2023. As per the amended plan, allowed administrative claims, priority tax claims, United States Trustee?s fees, allowed Trinity secured claim of $2.23 million, allowed warehouse secured claim of $0.24 million, unsecured priority wage claims, unsecured priority benefit plan contribution claims, and unsecured priority consumer deposit claims, shall be paid in full in cash.

DIP claims of $3 million shall pay to the reorganized debtor the effective date contribution and receive 63% of the equity interests in the reorganized debtor. Allowed SVB Senior secured claim of $4.46 million shall be settled in equal monthly installments. Allowed SVB and SVBC Mezzanine Secured Claims of $10 million shall receive 18.5% of the new equity interests in the reorganized debtor.

SVB and SVBC Mezzanine Secured Deficiency Claims of $21.81 million shall be treated as general unsecured claim and shall be paid in full in cash. General unsecured claims of $10.83 million shall be recovered 1.39% i.e., $0.15 million, and after the effective date, and that any pro rata distribution attributable to the mezz term loan deficiency claims will be reallocated and distributed to all holders of other allowed general unsecured claims until all other general unsecured claims have been paid in full, after which distributions on account of general unsecured claims will be made on account of the mezz term loan deficiency claims until the mezz term loan deficiency claims are paid in full. Intercompany claims shall be cancelled and shall not receive any distribution under the plan.

Equity Interests shall be cancelled. The plan shall be funded through cash and issue of equity.