KUSTOM ENTERTAINMENT, INC. (KUST): debt financing — Digital Ally closes $806K secured convertible note and $25M ELOC financing

KUSTOM ENTERTAINMENT, INC.

Issued $806,452 principal senior secured convertible notes (8% interest) and warrants for 476,569 shares at $2.124, gross proceeds $750K after 7% OID.
Conversion price set at 10% discount to 5-day VWAP; note ranks senior to all existing and future debt, secured by substantially all assets.
Entered $25M committed equity facility (ELOC) where investor buys shares at 92% of lowest daily price; term 36 months, subject to Nasdaq caps.
Purchaser cannot sell more than 20% of daily trading volume under Leak-Out Agreement; second closing of $250K notes contingent on registration effectiveness.
Proceeds from ELOC and note will be used for general corporate purposes; shares issued are unregistered under Section 4(a)(2) and Rule 506.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.85

KUSTOM ENTERTAINMENT, INC. incurred debt of up to an aggregate of $25,000,000 with an certain investor (the "ELOC Investor").

Principal: up to an aggregate of $25,000,000
Counterparty: an certain investor (the "ELOC Investor")
Event: incurrence

Exact text from the filing

the Company entered into a Common Stock Purchase Agreement (the "ELOC Purchase Agreement"), with an certain investor (the "ELOC Investor"), providing for a committed equity financing facility, pursuant to which, upon the terms and subject to the satisfaction of the conditions contained in the ELOC Purchase Agreement, the ELOC Investor has committed to purchase, at the Company's direction in its sole discretion, up to an aggregate of $25,000,000

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 1.0

KUSTOM ENTERTAINMENT, INC. incurred senior notes of aggregate original principal amount of $806,451.61 with a certain investor (the "Purchaser") at eight percent (8%).

Instrument: senior notes
Principal: aggregate original principal amount of $806,451.61
Counterparty: a certain investor (the "Purchaser")
Rate: eight percent (8%)
Event: incurrence

Exact text from the filing

the Company issued and sold to the Purchaser Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61

View on SEC.gov

Equity Issuances SEC 8-K Item 3.02/3.03 confidence 0.9

KUSTOM ENTERTAINMENT, INC. issued common stock to ELOC Investor.

Security: common stock
Purchaser: ELOC Investor

Exact text from the filing

the ELOC Investor has committed to purchase, at the Company's direction in its sole discretion, up to an aggregate of $25,000,000 (the "Total Commitment") of the shares of the Company's Common Stock

View on SEC.gov

Equity Issuances SEC 8-K Item 3.02/3.03 confidence 0.9

KUSTOM ENTERTAINMENT, INC. issued exercisable for an aggregate 476,569 shares of warrant to the Purchaser for exercise price of $2.124 per share.

Security: warrant
Shares: exercisable for an aggregate 476,569 shares
Purchaser: the Purchaser
Consideration: exercise price of $2.124 per share

Exact text from the filing

The Warrants are exercisable for an aggregate 476,569 shares at an exercise price of $2.124 per share of the Company's common stock

View on SEC.gov

Equity Issuances SEC 8-K Item 3.02/3.03 confidence 0.9

KUSTOM ENTERTAINMENT, INC. issued convertible note to the Purchaser for aggregate original principal amount of $806,451.61.

Security: convertible note
Purchaser: the Purchaser
Consideration: aggregate original principal amount of $806,451.61

Exact text from the filing

At the First Closing, the Company issued and sold to the Purchaser Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61 (the "Notes")

View on SEC.gov

10 debt financings filed in the last 30 days. Browse all debt financings →

KUSTOM ENTERTAINMENT, INC. filing history →

Source: SEC EDGAR

accession 0001493152-25-013877

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.