The US Bankruptcy Court gave an order to UC Colorado Corporation to obtain DIP financing on a final basis on September 1, 2020. As per the order, the debtor has been authorized to obtain a secured DIP loan in the amount of $5 million from TWS Pharma, LLC. The DIP loan would carry an interest rate of 8% p.a. and a default rate of 15% after the maturity date. As per the terms of the DIP agreement, the loan carries a commitment fee of 2.5% p.a. The DIP facility would mature either 60 days following the date of confirmation order, i.e. October 31, 2020 or 1 year after the date of the first advance under this agreement in the event the loan is not converted to a term loan or on the date of consummation of the sale of substantially all assets, whichever is earlier. A non-refundable loan fee of 2% will be paid to the lender. 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 $0.10 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.