Check-Cap Ltd. Secures $6M Loan to Fuel Growth: December 2024 Financial Insights

Here are the key insights extracted from the provided financial report (Form 6-K) for Check-Cap Ltd:

Company Information:

Name: Check-Cap Ltd.
Address: Check-Cap Building, Abba Hushi Avenue, P.O. Box 1271, Isfiya, Mount Carmel, Israel.

Filing Details:

Filing Type: Form 6-K.
Commission File Number: 001-36848.
Date of Filing: December 26, 2024.
Period Covered: Month of December 2024.
Forms Used for Annual Reports: The company indicated it files under Form 20-F, not Form 40-F.

Loan Agreement:

Approval Date: The Loan Agreement was approved on December 23, 2024, by the Board of Directors.
Loan Amount: The company has agreed to provide a loan of US$6.0 million to Nobul AI Corp.
Interest Rate: The loan will bear interest at 5% per annum, payable annually.
Repayment Terms: The total amount (principal + interest) is due 30 days following the termination of the Business Combination Agreement (BCA) or the consummation of the business combination.
Funding Source: The loan will be funded from a designated segregated and interest-bearing bank account.
Use of Funds: The loan proceeds are intended to fund specific acquisition targets and growth initiatives identified by the company and Nobul. As of this filing, US$2.1 million has been used for acquisition targets and growth initiatives, and US$0.7 million has been allocated for certain company expenses.

Management Signatory:

The report was signed by David Lontini, Board Chair of Check-Cap Ltd.

This report highlights a significant financial commitment by Check-Cap Ltd. to support Nobul AI Corp. through a structured loan agreement aimed at fostering growth and acquisitions. This move may indicate Check-Cap's strategic intent to expand its influence or capabilities through partnerships or acquisitions facilitated by Nobul.