LifeMD’s pharmacy subsidiaries received $12.5 million, but the loan pledges their assets, carries at least 11.50% interest, and limits other borrowing. It also requires at least $150 million in sales over 12 months, so the costs and limits outweigh the added cash.
The cash gives LifeMD funds to use. But the interest rate cannot fall below 11.50%, and the loan is backed by borrower assets. LifeMD must also keep sales at $150 million over 12 months and get lender approval for most new borrowing. These costs and limits outweigh the added cash.
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