CETY Taps $125K in Toxic Convertible Debt, Deepening Distress
CETY sits 97% above its 52-week low of $0.463 on light trading volume (0.2× avg).
Summary
Clean Energy Technologies raised $125,000 in net proceeds through a convertible note with deeply punitive terms, including a floating conversion price at a 15% discount to the lowest bid, cross-default provisions, and steep default penalties — a distress signal for a company already facing a going-concern warning and Nasdaq delisting.
Key Events · Financing and Capital Events · CETY
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Toxic Convertible Note Issued
The company sold a $147,840 convertible note to 1800 Diagonal Lending for $132,000, yielding net proceeds of only $125,000 after fees. The note carries a 12% one-time interest charge and requires nine monthly payments of $18,397.78, totaling $165,580.
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Punitive Conversion Terms
Upon default, the holder can convert at 85% of the lowest closing bid over the prior 10 trading days — a floating discount that could massively dilute existing shareholders if the stock price falls.
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Severe Default Penalties
Default triggers a 150% default amount (200% if conversion shares are not delivered), cross-default with other agreements, and a $2,000 per day failure-to-deliver fee, creating a debt spiral.
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Going-Concern Context
This financing follows a going-concern warning, restated financials, and Nasdaq delisting notices. The company had negative gross profit and critically low cash reserves as of its last 10-Q.
Analysis · CETY · Energy & Transportation
Clean Energy Technologies entered into a convertible promissory note with 1800 Diagonal Lending LLC, receiving only $125,000 in net proceeds against a $147,840 principal obligation. The terms are highly punitive: a 12% one-time interest charge, nine monthly payments totaling $165,580, and a default conversion price set at 85% of the lowest closing bid over the prior 10 trading days — a classic toxic-death-spiral structure. With the stock at $0.91 and the company already in a going-concern crisis, this financing signals extreme cash desperation and exposes existing shareholders to severe dilution upon any default. The note cross-defaults with other obligations, and a missed payment triggers a 150% default amount and a $2,000 per day failure-to-deliver penalty, further compounding the risk.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 41.1% of the 372 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. 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 $0.91 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $11.1M. The 52-week trading range was $0.46 to $5.01. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.