secwatch.observer — SEC 8-K summary
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Issuer:     Snail, Inc. (SNAL)
CIK:        0001886894
Form:       8-K
Filed at:   2025-02-25T23:59:59+00:00
Accession:  0001493152-25-008202
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Snail raises $3.3M in convertible notes (10% OID); conversion at $5/share with variable pricing
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- Issued two convertible notes totaling $3.3M principal (10% OID) to accredited investors on Feb 21, 2025.
- Conversion price primarily $5.00/share; on $866,250 portion, price is lower of $5.00 or 92% of lowest 5-day VWAP.
- Maturity 12 months; one-time 5% interest charge; default penalty of 120% of outstanding plus accrued interest.
- Reserves at least 2,293,940 shares for conversion; stockholder approval obtained for issuance exceeding 20%.
- Registration rights require filing S-1/S-3 within 90 days, effective within 120 days.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1886894/000149315225008202/0001493152-25-008202-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1886894/000149315225008202/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-25-008202

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer