debt
confidence high
sentiment neutral
materiality 0.50
Universal Safety Products amends SJC Lending deal; up to $2.65M convertible notes, 8% interest, 1-year maturity
UNIVERSAL SAFETY PRODUCTS, INC.
- A&R Securities Purchase Agreement dated Oct 9, 2026 with SJC Lending LLC; convertible notes up to $2,650,000 aggregate principal for up to $2.5M purchase price.
- Notes: 8% interest (20% on default), mature 1 year from issuance, 6% original issue discount; convertible at greater of $1.00 floor or 80% of 5-day lowest VWAP, capped at $10.00.
- Initial $1,060,000 note issued June 12, 2026 ($1M price); second $530,000 note July 29, 2026 ($500K); final $1,060,000 tranche due within 30 days after resale registration effective.
- SJC gets Additional Investment Right to buy another $2.65M of notes for $2.5M within 3 months of final closing, up to $10.6M aggregate; plus 1-year right of first refusal on future offerings.
- Issuing Conversion Shares above 19.99% of outstanding common requires stockholder approval; company seeks new approval after July 31, 2026 vote covered only Original Agreement notes.