debt
confidence high
sentiment neutral
materiality 0.55
Tribal Rides issues $290K convertible note to AJB Capital with commitment shares and warrants
SUPA Consolidated Inc.
- Principal $290,000, 10% annual interest (12% if extended, 20% on default); maturity May 10, 2021 with 6-month extension option.
- $29,000 original issue discount; note is convertible only upon Event of Default at 90% of lowest 20-day VWAP.
- Issued 1,320,000 commitment shares valued at $0.25 each ($330K) and warrants for 750,000 shares at $1.00, 3-year term.
- Company must maintain 5x the shares issuable upon conversion; failure increases principal by $5,000 per occurrence.
- Lender subject to 1-year leak-out restriction (max 20,000 shares or 20% of 5-day avg volume).