GT Biopharma Inc (GTBP)

[bloodhound99]

And now for that "A list" $ 750,000 credit line at 2 points over prime provided by Gemini.

It can only be used to buy products and inventory from Gemini



In order to fund our future working capital needs and the cost of manufacturing our future products, on November 8, 2010 we entered into an agreement with Gemini Pharmaceuticals, Inc., pursuant to which Gemini Pharmaceuticals granted us up to $750,000 of credit to fund our future purchases of Ergoth based products from them. Gemini Pharmaceuticals, Inc. is our primary product development and manufacturing partner. The amount of credit available to us will be tiered. Initially, $250,000 of credit is available to us. As we meet certain milestones, the amount of credit will increase to $750,000. The amounts borrowed under this facility will bear interests at a rate of prime plus 2% per annum. In addition, concurrently with the line of credit transaction, Gemini Pharmaceuticals also purchased 1,666,667 shares of our new Series I Preferred Stock at a price of $0.15 per share (an aggregate of $250,000).


Not only is the credit to be used solely to buy the lenders products, there appears to be some sort of milestones that OXIS has to meet for each $ 250,000 of the credit line.

Apparently Michael Finamore knows Tony Cataldo pretty well.