Envoy Medical Reports Material Agreement and Equity Sales

Ticker: COCHW · Form: 8-K · Filed: May 24, 2024 · CIK: 1840877

Sentiment: neutral

Topics: material-definitive-agreement, financial-obligation, equity-sale

TL;DR

Envoy Medical just signed a new deal creating a financial obligation and sold some stock. Watch this space.

AI Summary

On May 23, 2024, Envoy Medical, Inc. entered into a material definitive agreement related to the creation of a direct financial obligation. The company also reported on unregistered sales of equity securities. Specific details regarding the financial obligation and the equity sales, including dollar amounts and dates, are expected to be further elaborated in the filing's exhibits.

Why It Matters

This filing indicates potential new financial obligations and equity transactions for Envoy Medical, which could impact its financial structure and shareholder equity.

Risk Assessment

Risk Level: medium — The filing mentions a material definitive agreement creating a direct financial obligation and unregistered sales of equity securities, which can introduce financial risks and dilution.

Key Players & Entities

FAQ

What is the nature of the material definitive agreement entered into by Envoy Medical, Inc. on May 23, 2024?

The filing indicates that the agreement is related to the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of the registrant. Specific details are expected in the exhibits.

What type of financial obligation was created for Envoy Medical, Inc.?

The filing states it is a 'Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement'.

Did Envoy Medical, Inc. engage in any unregistered sales of equity securities?

Yes, the filing explicitly lists 'Unregistered Sales of Equity Securities' as an item information.

What is the exact date of the earliest event reported in this 8-K filing?

The date of the earliest event reported is May 23, 2024.

What is Envoy Medical, Inc.'s standard industrial classification?

Envoy Medical, Inc.'s standard industrial classification is 'ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]'.

Filing Stats: 671 words · 3 min read · ~2 pages · Grade level 10.6 · Accepted 2024-05-24 08:00:18

Key Financial Figures

Filing Documents

01: Entry Into a Material Definitive Agreement

Item 1.01: Entry Into a Material Definitive Agreement On May 23, 2024, Envoy Medical, Inc. (the "Company") drew $2,500,000 under the promissory note (the "Note") issued on February 27, 2024 by the Company to GAT Funding, LLC ("GAT"), an entity controlled by Glen Taylor, who is a member of the Company's board of directors and controlling stockholder of the Company. The additional draw brings the aggregate principal amount owed under the Note to $7,500,000 out of a maximum principal amount of $10,000,000. As a commitment fee for the $2,500,000 draw under the Note, the Company issued GAT a warrant to purchase 250,000 shares of its Class A Common Stock (the "Warrant"). The Warrant has an exercise price of $3.04, equal to the closing price on the date of the draw, and a termination date of February 27, 2026. Item2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K regarding the draw under the Loan Agreement is incorporated by reference into this Item 2.03. Item3.02 Unregistered Sales of Equity Securities. The information set forth in Item 1.01 of this Current Report on Form 8-K regarding the Warrant and the shares of Class A Common Stock issuable thereunder is incorporated by reference into this Item 3.02. The issuance of shares of the Company's common stock underlying the Warrants will be made in reliance on the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D thereunder. Item9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 1

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ENVOY MEDICAL, INC. May 24, 2024 By: /s/ David R. Wells David R. Wells Chief Financial Officer 2

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