Borealis Foods Inc. Subsidiaries Enter into $17.0 Million Term Loan Facility with Oxus Capital Pte Ltd

Published: 2026-04-29 05:50:42 ET BRLS

Published on 04/29/2026 at 05:50 am EDT

Borealis Foods Inc. subsidiaries entered into a $17.0 million term loan facility with Oxus Capital PTE Ltd. to repay in full the Company?s existing obligations to Frontwell Capital Partners Inc., improve near-term financial flexibility, and support operations. The proceeds of the Term Loan were used to repay in full all outstanding obligations under the Company?s existing credit agreement with Frontwell. In connection with the refinancing, the Frontwell credit agreement, including the related forbearance arrangements previously disclosed by the Company, was terminated, all control arrangements over the Company?s deposit accounts in favor of Frontwell were released, and the engagement of the Company?s Chief Restructuring Officer was terminated.

The Term Loan bears interest at 12% per annum, matures on April 27, 2031, and amortizes in 48 monthly installments commencing May 1, 2027. No cash interest is payable during the first twelve months, and accrued interest during that period may, at Oxus?s election, be converted into common shares of the Company. The Term Loan is secured by substantially all assets of the borrowers and guarantors, including mortgages on the Company?s manufacturing and distribution facilities in Saluda, South Carolina.

The Credit Agreement also requires the Company to appoint two designees of Oxus to the Board of Directors by May 11, 2026, replacing two existing directors. The related party aspects of these transactions were approved by the disinterested members of the Board of Directors. Additional details regarding the refinancing, the Conversion Agreement, and related transactions will be included in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission and available through EDGAR.