Crypto Co. issues $54K convertible note with 65% discount conversion; extends other debt

Crypto Co

Borrowed $54,250 from 1800 Diagonal Lending via convertible note due March 2024, 10% interest (22% default).
Conversion price set at 65% of lowest 10-day VWAP before conversion, subject to 4.99% ownership cap.
Prepayment penalties escalate from 115% to 125% over 180 days; after that, mutual consent required.
Extended maturity of AJB Capital and Efrat Investments notes to Jan 2024; amended warrants to $0.50 and issued new prefunded warrants.
Note is secured by a significant asset disposal restriction and contains standard events of default.

Key facts

Extracted from this filing and checked against the source text.

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

Crypto Co entered into Maturity Extension Agreement with AJB Capital Investments with AJB Capital Investments, LLC valued at extended maturity date of promissory note from May 2022 to January 15, 2024, amended exercise price (effective 2023-03-13).

Action: entry
Counterparty: AJB Capital Investments, LLC
Value: extended maturity date of promissory note from May 2022 to January 15, 2024, amended exercise price
Effective: 2023-03-13

Exact text from the filing

Separate from the entry into the SPA with Diagonal, effective March 13, 2023, the Company and AJB Capital Investments, LLC (“AJB”) entered into an agreement whereby, among other things, AJB agreed to extend the maturity date of the promissory note issued to AJB in May 2022 to January 15, 2024, and with all accrued and unpaid interest and principal to be due at maturity.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Crypto Co entered into Securities Purchase Agreement with 1800 Diagonal Lending, LLC valued at principal amount $54,250 convertible promissory note, 10% interest, default interest 22%, conversion (effective 2023-03-07).

Action: entry
Agreement: credit facility
Counterparty: 1800 Diagonal Lending, LLC
Value: principal amount $54,250 convertible promissory note, 10% interest, default interest 22%, conversion
Effective: 2023-03-07

Exact text from the filing

Effective March 7, 2023, The Crypto Company (the “Company”) borrowed funds pursuant to a Securities Purchase Agreement (the “SPA”) entered into with 1800 Diagonal Lending, LLC (“Diagonal”), and Diagonal purchased a convertible promissory note (the “Note”) from the Company in the aggregate principal amount of $54,250.

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

Crypto Co entered into Maturity Extension Agreement with Efrat Investments with Efrat Investments, LLC valued at extended maturity date of promissory note from April 2022 to January 15, 2024, amended exercise pric (effective 2023-03-13).

Action: entry
Counterparty: Efrat Investments, LLC
Value: extended maturity date of promissory note from April 2022 to January 15, 2024, amended exercise pric
Effective: 2023-03-13

Exact text from the filing

Additionally, effective March 13, 2023, the Company and Efrat Investments, LLC (“Efrat”) entered into an agreement whereby, among other things, Efrat agreed to extend the maturity date of the promissory note issued to Efrat in April 2022 to January 15, 2024, and with all accrued and unpaid interest and principal to be due at maturity.

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281 material agreements filed in the last 30 days. Browse all material agreements →

Crypto Co filing history →

Source: SEC EDGAR

accession 0001493152-23-007448

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