Guerrilla RF, Inc. completed a pivotal financial restructuring on August 5, 2024, through the North Run Private Placement. This transaction successfully raised approximately $21.60 million in net proceeds for the company. The capital infusion is a critical step in strengthening the company's financial position.
A substantial portion of the proceeds was used to pay down the Salem Loan Facility by $7.50 million, reducing its principal balance from $12.00 million to $4.50 million. This debt reduction significantly decreases the company's overall leverage and improves its balance sheet health.
The amendment to the Salem Loan Facility also extended its maturity date from January 31, 2026, to December 31, 2028. Furthermore, the interest rate was lowered from 14% (comprising 3% payment-in-kind deferred and 11% cash) to a more favorable 12% cash rate, which will reduce future interest expenses and improve cash flow.
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