secwatch.observer — SEC 8-K summary
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Issuer:     AI Financial Corp (AIFC)
CIK:        0000862861
Form:       8-K
Filed at:   2024-08-23T23:59:59+00:00
Accession:  0001493152-24-033672
Event type: debt
Sentiment:  negative
Materiality: 0.70
Item codes: 1.01, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Alt5 Sigma raises $1.6M via non-convertible debentures with escalating interest up to 4%/month and warrants
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- Sold three units: one $1.784M debenture + 400,000-share warrant; two $404,454.39 debentures each + 90,909-share warrants.
- Debentures bear interest at 1%/month (Aug–Oct 2024), 3%/month (Nov 2024–Jan 2025), then 4%/month until repayment.
- Principal includes escalating OID: base $1.271M (big) and $288,864 (small), increasing if not repaid by Oct 31, 2024 or Jan 29, 2025.
- Warrants exercisable at $1.71/share; initial tranches must be exercised within 15 days, contingent tranches vest on missed repayment dates.
- Maturity April 28, 2025; 50% of any future financing proceeds must be used to prepay debentures on a pro-rata basis.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/862861/000149315224033672/0001493152-24-033672-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/862861/000149315224033672/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-033672

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