Resonate Blends, Inc. (KOAN): debt financing — Resonate Blends signs merger to acquire Pegasus Specialty Vehicles; issues $575K bridge note

Resonate Blends, Inc.

Merger consideration: 623,500 shares of Series AA Preferred Stock to Pegasus members.
Parent must raise $3M net at closing; $500K pre-closing secured loan to Company.
Bridge note: $575K principal (15% OID), net $500K, matures Sep 20, 2023; 1,318K commitment shares.
Conditions include spin-out of cannabis assets (KOAN) and retirement of Series E Preferred.
Closing expected Q3 2023 subject to financing and other conditions.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Resonate Blends, Inc. incurred senior notes of $575,000 with an accredited investor at 15% per annum maturing September 20, 2023.

Instrument: senior notes
Principal: $575,000
Counterparty: an accredited investor
Rate: 15% per annum
Maturity: September 20, 2023
Event: incurrence

Exact text from the filing

On June 20, 2023, Parent signed a Securities Purchase Agreement (the “ Purchase Agreement ”) with an accredited investor (the “Investor”), pursuant to which Parent issued and sold to the Investor a 15% OID Senior Promissory Note (non-convertible), dated June 20, 2023, in the principal amount of $575,000 (the “ Parent Note ”).

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

Resonate Blends, Inc. entered into Agreement and Plan of Merger with Pegasus Specialty Vehicles, LLC (effective 2023-06-20).

Action: entry
Agreement: merger
Counterparty: Pegasus Specialty Vehicles, LLC
Effective: 2023-06-20

Exact text from the filing

AGREEMENT AND PLAN OF MERGER, dated as of June 20, 2023 (this “ Agreement”), is by and among Pegasus Specialty Vehicles, LLC

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Resonate Blends, Inc. filing history →

Source: SEC EDGAR

accession 0001493152-23-022218

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