Citius Pharmaceuticals Inc (OTCMKTS:CTXR) executed a second demand promissory note in favor of Leonard Mazur (“Lender”) in the principal amount of $500,000 (the “Note”). The Note bears interest at the “Prime Rate” as published in the Wall Street Journal on the last day of the month plus 1%, and matures on the earlier of December 31, 2017 and demand by the Lender.
The Board of Directors of the Company has authorized additional revolving demand promissory notes (the “Notes”) on substantially similar terms to the Note in favor of Lender, in a principal amount of up to $2.5 million, of which $1 million is now currently outstanding. As previously disclosed, the Company executed an initial demand note in favor of Lender in the principal amount $500,000 on September 7, 2016. The Notes shall be a revolving loan in the nature of a line of credit under which the Company may repeatedly draw or repay funds on a revolving basis for up to $2.5 million.
The Lender, Leonard Mazur, is our Executive Chairman and Secretary and a director of the Company.