SRAX, Inc.: debt financing — SRAX raises $460K via convertible debenture; senior lender converts $454K debt

SRAX, Inc.

$552K principal debentures sold at $460K (20% OID) to accredited investors; mature Nov 2024, 0% interest.
Debentures convertible at $0.25/share, subject to 4.99% beneficial ownership limitation.
Warrants to purchase up to 3.68M shares at $0.25/share (200% of conversion shares).
Senior secured lender converted $454,202 owed into same note, receiving 3.63M warrants.
Securities issued in private placement exempt from registration under Rule 506(b) and Section 4(a)(2).

item 1.01 item 2.03 item 2.04 item 3.02 item 9.01

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

SRAX, Inc. incurred convertible notes of $552,000 in principal amount of Original Issue Discount Convertible Debenture with certain accredited and institutional investors at 0%, no interest per annum maturing November 3, 2024.

Instrument: convertible notes
Principal: $552,000 in principal amount of Original Issue Discount Convertible Debenture
Counterparty: certain accredited and institutional investors
Rate: 0%, no interest per annum
Maturity: November 3, 2024
Event: incurrence

Exact text from the filing

On November 2, 2023, SRAX, Inc. (the “Company”) entered into definitive securities purchase agreements (the “Securities Purchase Agreement”) with certain accredited and institutional investors (the “Purchasers”) for the purchase and sale of an aggregate of: (i) $552,000 in principal amount of Original Issue Discount Convertible Debenture (the “Debentures”) for $460,000 (representing a 20% original issue discount) (“Purchase Price”)

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

SRAX, Inc. entered into Securities Purchase Agreement with certain accredited and institutional investors valued at $552,000 in principal amount of Original Issue Discount Convertible Debenture for $460,000 (effective 2023-11-02).

Action: entry
Agreement: equity purchase
Counterparty: certain accredited and institutional investors
Value: $552,000 in principal amount of Original Issue Discount Convertible Debenture for $460,000
Effective: 2023-11-02

Exact text from the filing

On November 2, 2023, SRAX, Inc. (the “Company”) entered into definitive securities purchase agreements (the “Securities Purchase Agreement”) with certain accredited and institutional investors (the “Purchasers”) for the purchase and sale of an aggregate of: (i) $552,000 in principal amount of Original Issue Discount Convertible Debenture (the “Debentures”) for $460,000 (representing a 20% original issue discount) (“Purchase Price”) and (ii) warrants to purchase up to 3,680,000 shares of the Company’s Class A common stock (the “Warrants”)

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Source: SEC EDGAR

accession 0001493152-23-039577

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