CETY Raises $500K Via 15%-Discount Convertible Note With Ratchet and Default Penalties
CETY has more than doubled off its 52-week low of $0.463.
Summary
Clean Energy Technologies sold a $500,000 convertible note to Falcon Venture Limited at 85% of the lowest recent traded price, with a perpetual ratchet and a 150% default penalty. It is the latest in a string of punitive convertibles for a company already flagged as a going concern.
Key Events · Financing and Capital Events · CETY
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$500K Convertible Note Sold to Falcon
CETY issued a $500,000 principal convertible note to Falcon Venture Limited on October 18, 2026, for a $500,000 cash purchase price that had already been received. The note matures October 18, 2027 and pays 8% interest, rising to 16% on default.
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15% Discount Conversion With Perpetual Ratchet
Conversion begins six months after issuance at 85% of the lowest traded price during the prior ten trading days. The dilutive-issuance clause resets the conversion price to any lower effective price on future issuances, in perpetuity, and a most-favored-nation clause pulls in more favorable terms from any future debt deal.
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Exchange Cap Equals ~20% of Shares Outstanding
Issuance is capped at 2,432,004 shares until shareholder approval under Nasdaq Rule 5635(d) — about 20% of the 12,166,106 shares outstanding as of September 30, 2026. A 9.99% beneficial ownership blocker also applies.
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Default Triggers Include Missed Vote and Annual Meeting
Failure to obtain shareholder approval or to hold the 2026 annual meeting by December 31, 2026 is an event of default, as is market capitalization below $5,000,000 on any trading day. Default amount is 150% of principal plus accrued interest.
Analysis · CETY · Energy & Transportation
CETY has taken on another $500,000 of convertible debt on terms that keep the dilution treadmill running. The note converts at 85% of the lowest traded price over the prior ten trading days — a 15% discount to the weakest print — and the dilutive-issuance clause lets the holder reset its conversion price to any lower price the company later offers anyone, in perpetuity. Against 12,166,106 shares outstanding as of September 30, 2026, the 2,432,004-share Exchange Cap alone equals roughly 20% of the current share count, and that cap lifts entirely if shareholders approve. The company also committed to a December 31, 2026 shareholder vote and annual meeting, with failure on either an event of default carrying a 150% default amount. This is the fifth punitive convertible in roughly three months, following the July 31, August 14 and September 14 notes, and it lands on a balance sheet that had $19.7K of cash at June 30 with a going-concern warning already in place.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 37.2% of the 999 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.80%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CETY was trading at $0.94 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $11.4M. The 52-week trading range was $0.46 to $2.98. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.