C-Bond Systems, Inc: debt financing — C-Bond eliminates conversion feature of last convertible note; sets monthly payments

C-Bond Systems, Inc

Agreement with Mercer Street eliminates conversion rights on $1.11M note; company pays $15k/month for 35 months plus $580k balloon.
Balloon payment due month 36; early payment discounts of up to 20% if paid by March 31, 2024.
Company also pays Mercer 20% of gross proceeds from any capital raise over $500k, applied to balloon.
Interest standstill begins with first payment; note total due as of Nov 30, 2023 was $1,113,090.74.
Only remaining convertible note on balance sheet; failure to make payments within cure period nullifies agreement.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

C-Bond Systems, Inc amended convertible notes of Balloon payment of $580,090 on the 36th month with Mercer Street Global Opportunity Fund, LLC at Standstill on interest due under the Note maturing 35 monthly payments of $15,000 with a balloon payment on the 36th month.

Instrument: convertible notes
Principal: Balloon payment of $580,090 on the 36th month
Counterparty: Mercer Street Global Opportunity Fund, LLC
Rate: Standstill on interest due under the Note
Maturity: 35 monthly payments of $15,000 with a balloon payment on the 36th month
Event: amendment

Exact text from the filing

into the Company’s common stock. The Company shall make the Payments on the 15th of every month. “Payments” shall mean $15,000 per month for 35 months with a balloon payment of $580,090 on the 36th month. Additionally, provided that the Company is in compliance with the Agreement, the Investor agreed to a standstill on the interest due under the Note beginning

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

C-Bond Systems, Inc amended Agreement with Mercer Street Global Opportunity Fund, LLC valued at $15,000 per month for 35 months with a balloon payment of $580,090 on the 36th month (effective 2023-12-04).

Action: amendment
Counterparty: Mercer Street Global Opportunity Fund, LLC
Value: $15,000 per month for 35 months with a balloon payment of $580,090 on the 36th month
Effective: 2023-12-04

Exact text from the filing

On December 4, 2023, C-Bond Systems, Inc. (the “Company”) entered into a letter agreement (the “Agreement”) with Mercer Street Global Opportunity Fund, LLC (the “Investor”) to eliminate the convertible features and implement a standstill on the interest due under the Convertible Promissory Note Dated October 15, 2021 (the “Note”).

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Source: SEC EDGAR

accession 0001213900-23-093327

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