debt
confidence high
sentiment negative
materiality 0.70
SusGlobal Energy issues $1.2M convertible note with $120K OID and 1.33M commitment shares
SusGlobal Energy Corp.
- Entered SPA with AJB Capital Investments for 10% unsecured convertible note, principal $1.2M, net proceeds $1.08M after $120K OID.
- Issued 1,333,333 common shares as commitment fee valued at $800K; total purchase price effectively $1.08M.
- Note matures earlier of Dec 23, 2022 or uplist to national exchange; convertible at 90% of market price after Event of Default.
- Default interest rate is 15% per annum on overdue amounts; negative covenants include maintaining corporate existence.
- Reserve of 8M shares initially for conversion; failure to maintain reserve adds $5K per occurrence to principal.