other material
confidence high
sentiment neutral
materiality 0.50
Alzamend trims Ault Lending preferred facility to $10M from $25M; $2.5M second tranche remains
Alzamend Neuro, Inc.
- Amended and restated Nov 10, 2026 purchase pact with Ault Lending, LLC, an affiliate, cuts total Series D convertible preferred sale to $10M from $25M.
- $7.5M initial tranche (7,500 shares at $1,050 stated value) closed July 31, 2026; $2.5M second tranche of 2,500 shares remains, 15 planned $1M monthly closings eliminated.
- Conversion price is the greater of a $0.2668 floor or 80% of the lowest 5-day closing bid (cap $2.00), with full-ratchet reset to the floor; voting floor $1.4175 vs $1.35 close.
- Resale registration due Nov 17, 2026; misses trigger 2% monthly liquidated damages capped at 15%; stockholder vote sought for shares above the 19.99% Nasdaq limit.
- 2% origination fee payable at each tranche closing; Purchaser holds a 3-year right of first refusal and 33.33% participation right on future financings.