Positron Corp Enters $2M Line of Credit Agreement

What Happened

• On August 13, 2026, Positron Corporation (Positron) entered into a Line of Credit Agreement with affiliated investor George Ortiz providing a line of credit up to $2,000,000. The company can draw funds subject to a $500,000 maximum per calendar quarter and a $50,000 minimum draw. Interest is fixed at 12% per year, paid quarterly; the first 12 months are interest-only, with principal payments required in the second 12 months. The line matures on August 13, 2028 (24 months), and amounts repaid may be reborrowed subject to the limits. Positron issued warrants to Mr. Ortiz for 300,000 common shares at $1.50 per share (expire December 31, 2030) as additional consideration.

Key Details

• Lender: George Ortiz (affiliated investor); Agreement date: August 13, 2026.
• Maximum line: $2,000,000; max draw per quarter: $500,000; min draw: $50,000.
• Interest: 12% fixed per annum, paid quarterly; interest-only for first 12 months; maturity Aug 13, 2028.
• Warrants: 300,000 shares, $1.50 exercise price, expire 12/31/2030; exercise price automatically reprices to $1.00 if the Company defaults on interest or principal.
• Default: lender may accelerate debt; default interest rate 18% per annum (or legal maximum); typical cure periods apply for missed payments or covenant breaches.

Why It Matters

• This line of credit provides near-term liquidity flexibility for Positron (ability to draw up to $2M over 24 months) while allowing reborrowing, which can support operations or financing needs.
• The cost of capital is relatively high (12% interest plus 300,000 warrants), and the warrants create potential shareholder dilution if exercised. The repricing feature on default increases dilution risk if payments are missed.
• Because the lender is an affiliated investor, this is a related‑party financing; investors should note both the benefit of secured access to capital and the potential financial impact from interest expense, warrant dilution, and default terms.