Bion Settles $162,500 Landlord Dispute with Convertible Note, Suspends Rent Until 2027

summarizeSummary

A $162,500 lease dispute with its Fair Oaks landlord has been settled via a convertible note that suspends rent until January 2027 and converts into stock at the next qualified financing price.

check_boxKey Events · Legal and Risk Events · BNET

• Landlord Settlement Executed

  On August 25, 2026, a Settlement and Mutual Release Agreement was signed with North Prairie Holdings, LLC, resolving $162,500 in delinquent lease payments for the Fair Oaks Ammonia Recovery System site.

• Convertible Note Issued

  A $162,500 convertible promissory note was issued, bearing 10% annual interest compounded monthly and maturing January 3, 2027 or upon a Qualified Financing of at least $2,000,000.

• Rent Suspended Until 2027

  Monthly $6,250 lease payments are suspended until January 3, 2027 or a Qualified Financing; unpaid rent accrues to the note principal, providing near-term cash relief.

• Conversion at Financing Price

  Upon a Qualified Financing, $50,000 is paid in cash and the remaining note balance automatically converts into common stock at the same price paid by new investors.

auto_awesomeAnalysis · BNET · Industrial Applications And Services

A $162,500 lease delinquency with its Fair Oaks landlord has been resolved through a convertible note that suspends rent payments until January 2027. The note carries a 10% interest rate and converts into common stock at the price of any future $2M+ equity raise. This removes an immediate litigation threat and preserves the company's demonstration facility, but adds a new convertible debt obligation with a Most Favored Nations clause that could give the landlord better terms if Bion raises cheaper capital later. For a company already under a going-concern warning, this is a survival move that trades near-term cash relief for future dilution and creditor leverage.