On August 21, 2026, Skye Bioscience (ticker SKYE) signed a definitive purchase agreement with Redmile Biopharma Investments III, an affiliate of Redmile Group, turning last week's binding term sheet into a formal equity line of credit (ELOC) of up to $22 million. Under the deal, Skye must direct monthly share sales capped at $2 million each over three years following the closing of its PIPE financing, priced off the PIPE price with a floor of a 10% discount, and it will also issue a warrant covering $5 million worth of stock exercisable through January 1, 2030. The ELOC shrinks dollar-for-dollar if the concurrent PIPE raises more than $103 million, disappears entirely at $125 million or above, and shares issued are generally capped at 19.99% of outstanding stock unless shareholders approve more. One caveat: the filing excerpt cuts off partway through, so some routine covenant details aren't reflected here.
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