CETY Secures $150K via Punitive Convertible Note with Walnut Capital
CETY has more than doubled off its 52-week low of $0.463 on light trading volume (0.4× avg).
Summary
CETY sold a $166,500 convertible note to Walnut Capital for $150,000, adding another punitive financing layer to an already distressed balance sheet.
Key Events · Financing and Capital Events · CETY
-
New $166,500 Convertible Note
Sold to Walnut Capital, LLC for $150,000 cash (original issue discount of $16,500). Note matures September 8, 2027.
-
Punitive Conversion Terms
Converts at 85% of the lowest closing bid price over the 10 trading days prior to conversion — a discount structure that increases share issuance as the stock falls.
-
Mandatory Repayment Schedule
10 monthly payments of $18,648 beginning December 8, 2026, totaling $186,480 — a 24% premium over the $150,000 received.
-
Default Penalties and Cross-Default
Default triggers 150% of outstanding amounts (200% if conversion failure follows), plus 22% default interest. Cross-defaults with all other Walnut Capital notes.
Analysis · CETY · Energy & Transportation
Clean Energy Technologies continues its pattern of high-cost, deeply dilutive financing. The company received $150,000 in net proceeds but must repay $186,480 over 10 months — an effective 24% premium before any conversion. The note converts at 85% of the lowest bid price over 10 days, a structure that rewards the lender when the stock falls. With cash at just $19.7K as of the last 10-Q and a going concern warning already on file, this financing extends the runway only marginally while adding a new overhang of up to 1.39 million reserved shares. The 150% default penalty and cross-default provisions with prior notes create a cascading risk if any payment is missed.
How filings like this one have moved
In the 30 days to Sep 17, 2026, 35.7% of the 1179 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.44%. 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 $1.05 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $12.7M. The 52-week trading range was $0.46 to $5.01. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.