NightHawk Biosciences: Material Agreement, Equity Sales Reported

TL;DR

**NightHawk Biosciences just reported new debt and equity sales, likely diluting shareholders.**

AI Summary

NightHawk Biosciences, Inc. filed an 8-K on January 30, 2024, reporting an event on January 26, 2024, related to an entry into a material definitive agreement, creation of a direct financial obligation, and unregistered sales of equity securities. This filing indicates the company is likely raising capital or restructuring its finances, which could dilute existing shareholders if new shares are issued, impacting the stock's value.

Why It Matters

This filing signals potential dilution for current shareholders due to unregistered equity sales and new financial obligations, which could impact the stock's price and future earnings per share.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations and unregistered equity sales, which can lead to dilution and increased debt burden, posing a medium risk to current investors.

Analyst Insight

A smart investor would closely monitor NightHawk Biosciences' upcoming financial statements for details on the new obligations and equity sales to assess the extent of dilution and debt impact before making any investment decisions.

Key Players & Entities

• NightHawk Biosciences, Inc. (company) — the registrant filing the 8-K
• January 26, 2024 (date) — date of the earliest event reported in the 8-K
• January 30, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• NightHawk Biosciences' stock price will experience downward pressure due to potential shareholder dilution. (NightHawk Biosciences, Inc.) — medium confidence, target: 2024-02-29
• The company's debt levels will increase following the 'Creation of a Direct Financial Obligation'. (NightHawk Biosciences, Inc.) — high confidence, target: 2024-03-31

FAQ

Key Financial Figures

• $0.0002 — nge on which registered Common Stock, $0.0002 par value per share NHWK NYSE America
• $1,000,000 — o the Patent Agreement, in exchange for $1,000,000, the Company has assigned its right, ti
• $2,250,000 — missory note in the aggregate amount of $2,250,000 (the "Note"), the conversion of which i
• $0 — maturity date. The conversion price is $0.39281, which is equal to 110% of the vo

Filing Documents

• nhwk_8k.htm (8-K) — 34KB
• ex4x1.htm (EX-4.1) — 65KB
• ex10x1.htm (EX-10.1) — 31KB
• ex99x1.htm (EX-99.1) — 8KB
• image_001.jpg (GRAPHIC) — 10KB
• 0001079973-24-000145.txt ( ) — 392KB
• nhwk-20240126.xsd (EX-101.SCH) — 3KB
• nhwk-20240126_def.xml (EX-101.DEF) — 26KB
• nhwk-20240126_lab.xml (EX-101.LAB) — 36KB
• nhwk-20240126_pre.xml (EX-101.PRE) — 25KB
• nhwk_8k_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On January 29, 2024, NightHawk Biosciences, Inc., a Delaware corporation (the "Company"), entered into a Patent Rights Sale and Assignment Agreement with Kopfkino IP, LLC ("Patent Agreement"). Pursuant to the Patent Agreement, in exchange for $1,000,000, the Company has assigned its right, title and interest in and under the exclusive license agreement it entered into with Shattuck Labs, Inc. ("Shattuck") in 2016, including its rights to certain provisional patent applications and know-how related to fusion proteins to treat cancer and other diseases that were not being developed by the Company. On January 26, 2024 in accordance with the terms of that certain Asset and Equity Interests Purchase Agreement, dated December 11, 2023 (the "Agreement"), with Elusys Holdings Inc. ("Elusys"), Elusys purchased from the Company a convertible promissory note in the aggregate amount of $2,250,000 (the "Note"), the conversion of which is subject to both Elusys' election and obtaining stockholder approval of the issuance of shares of the Company's common stock upon such conversion. The Note bears interest at a rate of 1% per annum, matures on the one-year anniversary of its issuance and converts into shares of the Company's common stock at the option of Elusys only if stockholder approval of the issuance of such shares of common stock issuable upon conversion of the Note is obtained prior to the maturity date. The conversion price is $0.39281, which is equal to 110% of the volume weighted average price (VWAP) of the Company's common stock for the seven trading days prior to December 11, 2023. Based upon such conversion price Elusys would be issued 5,727,960 shares of the Company's common stock upon conversion of the Note. Notwithstanding the foregoing, if the Company consummates a public financing, subject to certain exceptions, within sixty days of December 11, 2023, the conversion price will be adjusted to be 110% of the

03 Creation of a Direct Financial Obligation Or an Obligation

Item 2.03 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 is incorporated herein by reference into this Item 2.03 in its entirety.

02 Unregistered Sales of Equity Securities

Item 3.02 Unregistered Sales of Equity Securities. The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference into this Item 3.02 in its entirety. The Note and the shares of common stock that may be issued under the Note are being offered and sold in a transaction exempt from registration under the Securities Act in reliance on Section 4(a)(2) thereof and/or Rule 506(b) of Regulation D thereunder.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On January 30, 2024, the Company issued a press release announcing its entry into the Patent Agreement and the issuance of the Note. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Item 7.01 and in the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended and shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. The press release furnished as Exhibit 99.1 to this Current Report on Form 8-K includes "safe harbor" language pursuant to the Private Securities Litigation Reform Act of 1995, as amended, indicating that certain statements contained therein are "forward-looking" rather than historical.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits . (d) Exhibits. Exhibit Number Description 2.1 Asset and Equity Interests Purchase Agreement by and between NightHawk Biosciences, Inc. and Elusys Holdings Inc., dated as December 11, 2023 (incorporated by reference to the Current Report on Form 8-K filed with the Securities and Exchange Commission on December 12, 2023 (File No. 001-35994) 4.1 Note in the principal amount of $2,250,000 issued to Elusys Holdings Inc. 10.1 Patent Rights Sale and Assignment Agreement between NightHawk Biosciences, Inc. and Kopfkino IP, LLC 99.1 Press Release issued by NightHawk Biosciences, Inc. January 3 , 2024. 104 Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

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. Dated: January 30, 2024 NightHawk Biosciences, Inc. By: /s/ Jeff Wolf Name: Jeff Wolf Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR