Driveitaway Holdings, Inc. (DWAY): debt financing — DriveitAway subsidiary DIA Leasing enters $2M line of credit at 15%; issues warrant for 5M shares

Driveitaway Holdings, Inc.

DIA Leasing, LLC obtains up to $2M line of credit from an investor for motor vehicle purchases; interest rate 15% per annum.
DriveitAway issues prefunded warrant to purchase up to 5M shares of common stock to the lender as additional consideration.
Line of credit allows up to eight draws of $250K each over 180 days; repayment: interest-only first 3 months, then 48-month amortization, balloon at 18 months.
Loans secured by liens on vehicle titles; DriveitAway acts as guarantor; no outstanding loans or letters of credit as of March 1, 2024.
Proceeds must be used solely for purchasing motor vehicles; commitment fee of 2% of each disbursement applies.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Driveitaway Holdings, Inc. incurred revolving credit of $2,000,000 line of credit with the Lender at fifteen percent (15%) per annum maturing eighteen (18) months from the date that the funds for each Draw are disbursed.

Instrument: revolving credit
Principal: $2,000,000 line of credit
Counterparty: the Lender
Rate: fifteen percent (15%) per annum
Maturity: eighteen (18) months from the date that the funds for each Draw are disbursed
Event: incurrence

Exact text from the filing

On March 1, 2024, DIA Leasing, LLC. (the “Borrower”), a direct wholly owned subsidiary of DriveitAway Holdings, Inc. (“DWAY”), closed a $2,000,000 line of credit facility (the “Credit Facility”) with an investor (the “Lender”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Driveitaway Holdings, Inc. entered into Credit Facility with an investor (the "Lender") valued at $2,000,000 line of credit (effective 2024-03-01).

Action: entry
Agreement: credit facility
Counterparty: an investor (the "Lender")
Value: $2,000,000 line of credit
Effective: 2024-03-01

Exact text from the filing

On March 1, 2024, DIA Leasing, LLC. (the "Borrower"), a direct wholly owned subsidiary of DriveitAway Holdings, Inc. ("DWAY"), closed a $2,000,000 line of credit facility (the "Credit Facility") with an investor (the "Lender").

View on SEC.gov

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Driveitaway Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001731122-24-000751

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