VolitionRx Limited (NYSE:VNRX) announced Thursday it has entered into a waiver and consent agreement with Lind Global Asset Management XII LLC after failing to meet a market capitalization covenant tied to its convertible promissory notes.
According to an SEC filing, VolitionRx had issued two senior secured convertible promissory notes to Lind Global: one for $7.5 million in May 2025 and another for $2.4 million in January 2026. Both notes required maintaining a minimum market capitalization.
At the time of the breach, the company's market cap stood at just $24.64 million, with total debt of $11.7 million. Its current ratio is 0.33, indicating short-term obligations exceed liquid assets.
On Wednesday, VolitionRx and Lind Global signed a waiver. Lind Global agreed to forgo certain rights, including declaring the notes immediately due or foreclosing on collateral.
As a result, VolitionRx must pay an additional amount equal to 10% of the outstanding principal on each note.
Shares jumped 56.5% over the past week but fell 69.72% over the past year. Bond.az rates the company's financial health as 'WEAK' with a score of 1.73 out of 5.
The waiver allows Lind Global to convert the outstanding principal into shares at a discounted price, subject to a 4.99% ownership cap.
