debt
confidence high
sentiment neutral
materiality 0.60
Reborn Coffee closes $1.5M third tranche of secured debentures, amends redemption terms
Reborn Coffee, Inc.
- Third closing: issued $1,666,667 principal debentures for $1,500,000 (10% OID) plus 91,076 warrants to Arena Investors.
- Global Amendment: Company must use 30% of gross proceeds from future financings to redeem debentures at 120% of principal plus interest.
- Conversion price set at 92.5% of lowest 5-day VWAP prior to conversion; 10% PIK interest, 2% monthly default rate.
- Warrants issued at 20% of principal, exercisable at 92.5% of average lowest VWAP before exercise notice.
- Amendments apply to previously issued debentures and future tranches under the Securities Purchase Agreement.