secwatch / observer
8-K filed April 7, 2023, 7:59 PM ET ticker KUST CIK 0001342958
debt confidence high sentiment neutral materiality 0.70

KUSTOM ENTERTAINMENT, INC. (KUST): debt financing — Digital Ally issues $3M secured convertible notes at 10% OID, plus warrants

KUSTOM ENTERTAINMENT, INC.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

KUSTOM ENTERTAINMENT, INC. incurred senior notes of $3,000,000 with certain investors at No interest accrues under the Notes.

Instrument
senior notes
Principal
$3,000,000
Counterparty
certain investors
Rate
No interest accrues under the Notes
Event
incurrence
Exact text from the filing
At the First Closing, the Company issued and sold to the Purchasers Senior Secured Convertible Notes in the aggregate original principal amount of $3,000,000
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

KUSTOM ENTERTAINMENT, INC. entered into Senior Secured Convertible Notes with certain investors valued at $3,000,000 principal amount (effective 2023-04-05).

Action
entry
Agreement
notes offering
Counterparty
certain investors
Value
$3,000,000 principal amount
Effective
2023-04-05
Exact text from the filing
On April 5, 2023, Digital Ally, Inc. (the “Company”) entered into and consummated the initial closing (the “First Closing”) of the transactions contemplated by a Securities Purchase Agreement, dated as of April 5, 2023 (the “Purchase Agreement”), between the Company and certain investors (the “Purchasers”).
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

KUSTOM ENTERTAINMENT, INC. entered into Security Agreement with Purchasers valued at Secured by substantially all assets (effective 2023-04-05).

Action
entry
Agreement
credit facility
Counterparty
Purchasers
Value
Secured by substantially all assets
Effective
2023-04-05
Exact text from the filing
The Notes rank senior to all outstanding and future indebtedness of the Company and its subsidiaries, and are secured by substantially all of the Company’s assets, as evidenced by (i) a Security Agreement entered into at the Closing (the “Security Agreement”), (ii) a Trademark Security Agreement entered into at the Closing (the “Trademark Security Agreement”), (iii) a Patent Security Agreement entered into at the Closing (the “Patent Security Agreement”), (iv) a Guaranty executed by all direct and indirect subsidiaries of the Company (the “Guaranty”) pursuant to which each of them has agreed to guaranty the obligations of the Company under the Notes, and (v) a mortgage on the Company’s headquarters building in favor of the Purchasers.
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10 debt financings filed in the last 30 days. Browse all debt financings →

KUSTOM ENTERTAINMENT, INC. filing history →

Source: SEC EDGAR
accession 0001493152-23-011561
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