Harvard Apparatus Regenerative Technology, Inc. Announces \$300,000 Bridge Loan from CEO Junli He

Key Points:

• Harvard Apparatus Regenerative Technology, Inc. (HRGN) has entered into a loan arrangement with its Chairman and CEO, Junli He.
• The loan is for an aggregate amount of \$300,000, as outlined in a Bridge Note executed on April 13, 2026.
• The Bridge Note carries an annual fixed interest rate of 8% and has provisions for optional conversion into equity at the lender’s discretion under certain conditions.
• The principal and accrued interest are due on the earlier of the company’s next capital raise of at least \$5 million or April 13, 2027.
• This transaction is a related-party transaction, as the lender is also the company’s CEO and Chairman.

Full Details of the Loan Arrangement

On April 13, 2026, Harvard Apparatus Regenerative Technology, Inc. announced that it entered into a bridge financing arrangement with Junli He, who serves as both the Chairman and Chief Executive Officer of the company. Under the terms of this agreement, Mr. He will provide a \$300,000 loan to the company, which is documented through a Bridge Note signed by both parties.

The Bridge Note carries an annual fixed interest rate of 8%. According to the terms, the full principal and all accrued and unpaid interest will become due and payable in full at the earlier of:

1. The closing date (or any later date of capital being provided in a continued offering) of the company’s next capital raise that includes gross proceeds of at least \$5,000,000; or
2. April 13, 2027.

Notably, the Bridge Note includes the following provisions:

• Optional Equity Conversion: The lender (Junli He) can choose to convert the outstanding principal and accrued interest into equity securities if the company completes a Qualified Financing of at least \$300,000 (excluding this loan) before the Maturity Date. The conversion price would be the same as the price paid by other investors in that financing round.
• Covenants and Events of Default: The note includes standard covenants and events of default, such as failure to pay when due, non-compliance with terms, bankruptcy events, sale of the company, or adverse judgments.
• Prepayment Allowed: The company may prepay the note without penalty.

The full text of the Bridge Note is available as Exhibit 10.1 to the company’s Form 8-K filing.

Important Considerations for Shareholders

• Related-Party Transaction: The loan is provided by Junli He, the CEO and Chairman. Related-party transactions can raise governance and transparency concerns for some investors, especially when they involve favorable terms for insiders.
• Liquidity and Financing Risk: The company’s decision to secure a bridge loan from its CEO suggests a need for near-term liquidity. Investors may interpret this as a sign of cash flow constraints, which can be price sensitive.
• Potential Equity Dilution: If the Bridge Note is converted into equity, this could dilute existing shareholders. The conversion would be at the same price as any Qualified Financing, so the impact will depend on future financing terms.
• Event of Default and Change-of-Control Provisions: The note includes customary events of default, including failure to pay, bankruptcy, or a sale of the company. Any such event could have a material impact on shareholder value.

Potential Impact on Share Price

This announcement is potentially price-sensitive for several reasons:

• It signals that the company may require additional working capital in the near term, as evidenced by the need for bridge financing.
• The fact that the financing is provided by the CEO could be interpreted positively (insider support) or negatively (lack of external investor interest), depending on investor sentiment.
• The terms allow for conversion into equity, which may introduce dilution risk in the event of future financings.

Trading Information

• Harvard Apparatus Regenerative Technology, Inc. trades on the OTCQB under the symbol HRGN.

Disclaimer: This article summarizes recent SEC filings and related disclosures by Harvard Apparatus Regenerative Technology, Inc. It is for informational purposes only and does not constitute investment advice. Investors should review all related filings and consult their own advisors before making investment decisions. The author and publisher assume no responsibility for investment actions taken based on this article.

View Harvard Apparatus Regenerative Technology, Inc. Historical chart here