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

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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

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

KUSTOM ENTERTAINMENT, INC. filing history →

Source: SEC EDGAR

accession 0001493152-25-013877

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