Clean Energy Technologies Secures $141K Loan with Punitive Convertible Note Terms

summarizeSummary

Clean Energy Technologies obtained $141,000 in net proceeds from a convertible promissory note with punitive terms, including a deep discount conversion upon default and high interest rates, highlighting the company's continued financial struggles.

check_boxKey Events · Financing and Capital Events · CETY

• Secured High-Cost Convertible Note

  The company received $141,000 in net proceeds from a $166,500 convertible promissory note with Coventry Enterprises LLC, to be used for general working capital.

• Punitive Conversion Terms

  The note is convertible only upon default at 85% of the lowest closing bid price during the 10 trading days prior to conversion, with beneficial ownership and shareholder approval caps.

• High Interest and Default Penalties

  The note includes a 12% one-time interest charge and a 22% default interest rate, with a 150% to 200% repayment penalty on default.

• Significant Potential Dilution

  The company reserved 1,391,428 shares for conversion, representing approximately 11.4% of current outstanding shares, with further dilution possible due to the conversion price mechanism.

auto_awesomeAnalysis · CETY · Energy & Transportation

Clean Energy Technologies has secured a $141,000 net capital infusion through a convertible promissory note with highly unfavorable terms. This financing, while providing immediate working capital, comes at a significant cost, including a 12% one-time interest charge and a 22% default interest rate. The note is convertible into common stock at a deep discount (85% of the lowest bid price) only upon default, which could lead to substantial dilution for existing shareholders. This transaction underscores the company's ongoing financial distress, following a series of delisting notices, financial restatements, and previous high-interest loans, indicating persistent challenges in securing less punitive capital.