Arcimoto Inc: debt financing — Arcimoto issues $660K principal OID promissory notes due Aug 15, 2023 for $600K net proceeds

Arcimoto Inc

Sold two unsecured OID notes to Gregory Castaldo and Joseph Reda, each $330K principal ($300K purchase price).
Notes mature Aug 15, 2023, bear no interest until maturity, but accrue 18% after 3-day default grace.
Proceeds used for capex and working capital; notes convertible into equity at $1 of principal per $1 of new offering price.
Investors have MFN conversion rights in any subsequent equity offering while notes are outstanding.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Arcimoto Inc incurred loan of $330,000 with Gregory Castaldo and Joseph Reda at no interest until August 15, 2023 maturing August 15, 2023.

Instrument: loan
Principal: $330,000
Counterparty: Gregory Castaldo and Joseph Reda
Rate: no interest until August 15, 2023
Maturity: August 15, 2023
Event: incurrence

Exact text from the filing

On August 8, 2023, Arcimoto, Inc. (the “Company”) sold Gregory Castaldo and Joseph Reda (the “Investors”), each an unsecured original issue discount promissory note in the principal amount of $330,000 (the “Promissory Notes”).

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

Arcimoto Inc entered into Promissory Notes with Gregory Castaldo and Joseph Reda valued at $330,000 (effective 2023-08-08).

Action: entry
Agreement: notes offering
Counterparty: Gregory Castaldo and Joseph Reda
Value: $330,000
Effective: 2023-08-08

Exact text from the filing

On August 8, 2023, Arcimoto, Inc. (the “Company”) sold Gregory Castaldo and Joseph Reda (the “Investors”), each an unsecured original issue discount promissory note in the principal amount of $330,000 (the “Promissory Notes”).

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Source: SEC EDGAR

accession 0001213900-23-067155

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