Bantec, Inc.: debt financing — Bantec enters $90,400 convertible note with 14% interest, 10% OID, and deep discount conversion

Bantec, Inc.

Principal $90,400 with $10,400 OID; net proceeds ~$80,000 for working capital.
Ten monthly payments of $10,305.60; first due Aug 30, 2023; matures May 15, 2024.
Unsecured note; upon default, 150% default amount + 22% interest; conversion at 39% of lowest closing price in prior 10 days.
Proceeds for working capital; issued in private placement under Section 4(a)(2)/Reg D.
Conversion capped at 4.99% beneficial ownership.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.98

Bantec, Inc. incurred loan of $90,400 principal amount, including an original issue discount of $10,400.00 with 1800 Diagonal Lending LLC at 14% interest charge of $12,565.00, and default interest at 22% per annum maturing May 15, 2024.

Instrument: loan
Principal: $90,400 principal amount, including an original issue discount of $10,400.00
Counterparty: 1800 Diagonal Lending LLC
Rate: 14% interest charge of $12,565.00, and default interest at 22% per annum
Maturity: May 15, 2024
Event: incurrence

Exact text from the filing

On July 17, 2023, Bantec, Inc. (the “Company”) entered into the Securities Purchase Agreement (the “Agreement”) with 1800 Diagonal Lending LLC (“Lender”), pursuant to which the Company issued a promissory note (the “Note”) to the Lender in the principal amount of $90,400, including an original issue discount of $10,400.00.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Bantec, Inc. entered into Securities Purchase Agreement with 1800 Diagonal Lending LLC valued at $90,400 (effective 2023-07-17).

Action: entry
Agreement: credit facility
Counterparty: 1800 Diagonal Lending LLC
Value: $90,400
Effective: 2023-07-17

Exact text from the filing

On July 17, 2023, Bantec, Inc. (the “Company”) entered into the Securities Purchase Agreement (the “Agreement”) with 1800 Diagonal Lending LLC (“Lender”), pursuant to which the Company issued a promissory note (the “Note”) to the Lender in the principal amount of $90,400, including an original issue discount of $10,400.00.

View on SEC.gov

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Source: SEC EDGAR

accession 0001213900-23-060864

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