FORMATION MINERALS, INC.: debt financing — Formation Minerals issues $60K convertible promissory note to Alumni Capital LP

FORMATION MINERALS, INC.

Net proceeds of $50K after $10K original issue discount; note matures May 5, 2025.
Interest at 10% per annum; default interest rate of 22%.
Convertible into common stock at 60% of lowest 30-day trading price (40% discount).
Funds for legal and general working capital; Enclave Capital receives 8% fee.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.97

FORMATION MINERALS, INC. incurred loan of $60,000 principal amount, issued at $50,000 purchase price with $10,000 original issue discount with Alumni Capital, LP at 10% per annum from issue date; 22% default rate on past due amounts maturing May 5, 2025.

Instrument: loan
Principal: $60,000 principal amount, issued at $50,000 purchase price with $10,000 original issue discount
Counterparty: Alumni Capital, LP
Rate: 10% per annum from issue date; 22% default rate on past due amounts
Maturity: May 5, 2025
Event: incurrence

Exact text from the filing

On March 5, 2025, (the "Issue Date") the Company issued and sold to Alumni Capital, LP, a Delaware limited partnership ("Alumni"), a Promissory Note (the "Alumni Note") in the principal amount of $60,000, for a purchase price of $50,000, reflecting an original issue discount of $10,000, which matures on May 5, 2025, pursuant to a Securities Purchase agreement (the "Alumni Purchase Agreement"), dated as of May 5, 2025, by and between the Company and Alumni.

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Source: SEC EDGAR

accession 0001213900-25-023289

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