CTOR · Citius Oncology, Inc.

Citius Oncology executed a dual-track financing strategy to bolster its balance sheet and support the commercialization of LYMPHIR. The Company secured a senior secured credit facility with Avenue Capital providing up to $25 million in capital. The structure includes an initial $10 million tranche funded at closing, with two subsequent tranches totaling $15 million contingent on achieving specific net revenue and liquidity milestones. The facility carries a high cost of capital, with an interest rate of Prime plus 6.00% and a floor of 12.75%, reflecting the risk profile of a commercial-stage oncology company. The 24-month interest-only period provides near-term cash flow relief, while the final payment of $1.06 million at maturity represents a significant back-ended cost. Concurrently, the Company completed a warrant inducement transaction, raising $11.5 million by incentivizing a holder to exercise 12.8 million existing warrants at a reduced price of $0.90. In exchange, the Company issued new warrants for 25.5 million shares, effectively doubling the potential dilution from the exercised warrants. The Company also amended 15.7 million outstanding warrants to align their terms with the new warrants. To accommodate the new senior debt, the Company amended its subordinated promissory note with its parent, Citius Pharmaceuticals, extending the maturity and adding a conversion feature at $0.90 per share. These transactions provide immediate capital and future funding capacity but introduce substantial dilution and leverage, underscoring the financial demands of the LYMPHIR launch.