C-Bond Systems, Inc: debt financing — C-Bond Systems enters $157K debt financing with conversion upon default at 35% discount

C-Bond Systems, Inc

Issued $157K promissory note (incl. $13K OID) to 1800 Diagonal Lending; funded $125K; net proceeds ~$106K after $19K fees.
Interest 12% p.a., monthly payments start Aug 30, 2024; default triggers 22% interest and 220% payoff or conversion at the greater of $0.0025 or 65% of 10-day VWAP.
Conversion only on default; price is greater of $0.0025 fixed or 65% of lowest closing bid in prior 10 trading days (35% discount).
Proceeds for general working capital; buyer also receives $19K expense reimbursement for legal and due diligence.

item 1.01 item 2.03 item 9.01

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

C-Bond Systems, Inc incurred loan of $157,000 with 1800 Diagonal Lending LLC at twelve percent (12%).

Instrument: loan
Principal: $157,000
Counterparty: 1800 Diagonal Lending LLC
Rate: twelve percent (12%)
Event: incurrence

Exact text from the filing

On March 1, 2024, C-Bond Systems, Inc. (the “Company”) executed a Promissory Note (“Note”) in favor of 1800 Diagonal Lending LLC (the “Investor”) in the aggregate principal amount of $157,000 (the “Principal”), and an accompanying Securities Purchase Agreement (“SPA”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.98

C-Bond Systems, Inc entered into Promissory Note and Securities Purchase Agreement with 1800 Diagonal Lending LLC valued at $157,000 aggregate principal amount; funded $125,000 on March 4, 2023 (effective 2024-03-01).

Action: entry
Agreement: credit facility
Counterparty: 1800 Diagonal Lending LLC
Value: $157,000 aggregate principal amount; funded $125,000 on March 4, 2023
Effective: 2024-03-01

Exact text from the filing

On March 1, 2024, C-Bond Systems, Inc. (the “Company”) executed a Promissory Note (“Note”) in favor of 1800 Diagonal Lending LLC (the “Investor”) in the aggregate principal amount of $157,000 (the “Principal”), and an accompanying Securities Purchase Agreement (“SPA”).

View on SEC.gov

299 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR

accession 0001213900-24-020790

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