Eyenovia's Debt Restructuring: A Strategic Move for Long-Term Growth

Eyenovia, Inc. (NASDAQ: EYEN), an ophthalmic technology company, recently announced a significant debt restructuring, including an amendment to its senior secured debt. This move aims to improve the company's cash runway, allowing it to evaluate strategic alternatives and continue developing its proprietary Optejet® device. The restructuring, effective as of February 24, 2025, includes a deferral of monthly interest and amortization payments from March 2025 through September 2025, as well as an option for full debt conversion into common shares at $1.68 per share, commencing on April 1, 2025.



This debt restructuring provides Eyenovia with immediate cash preservation by deferring debt service obligations, allowing the company to redirect these funds towards critical areas such as the development of its advanced Optejet device and the exploration of strategic alternatives. The conversion feature, while providing flexibility, could lead to significant dilution for existing shareholders if exercised. However, it also offers a potential pathway to deleveraging, which could ultimately enhance shareholder value.

Eyenovia is currently focused on completing the development of its Gen-2 user-filled Optejet® device by the third quarter of 2025. This advanced device could be commercially available by the end of 2025, providing a new revenue stream and driving the company's growth. Additionally, Eyenovia is exploring options for use as both a consumer "user-filled" product and a proprietary drug-device combination, further expanding its market potential.



The company is also considering a variety of strategic alternatives to maximize value to all stakeholders, reduce expenses, and evaluate its strategic options. These alternatives may include a business combination, reverse merger, asset sales, or a combination of those alternatives. By pursuing these strategic alternatives and continuing to innovate, Eyenovia aims to create a more robust and diversified business, ultimately enhancing long-term growth and shareholder value.

In conclusion, Eyenovia's debt restructuring represents a critical financial maneuver that buys the company important time to either advance its Optejet® device development or complete a potential strategic transaction. The restructuring provides immediate cash preservation and a potential pathway to deleveraging, while also underscoring the urgency of achieving one of these outcomes before the new September 2025 deadline. As Eyenovia continues to evaluate strategic alternatives and advance its proprietary Optejet device, investors should monitor the company's progress and the potential impact on its long-term growth and shareholder value.