Clean Energy Technologies Secures $178K Convertible Note with Punitive Terms
CETY has more than doubled off its 52-week low of $0.463 on light trading volume (0.1× avg).
Summary
Clean Energy Technologies raised $143,000.80 in net proceeds through a convertible note with Pacific Pier Capital II, LP, featuring a 12% interest rate, a conversion price at 85% of the lowest recent VWAP, and a 150% default penalty — terms that reflect the company's distressed financial position.
Key Events · Financing and Capital Events · CETY
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Convertible Note Issued
Sold a $178,410 convertible promissory note to Pacific Pier Capital II, LP for $150,000.80, with net proceeds of $143,000.80 after $7,000 in legal fees.
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Punitive Conversion Terms
Note converts at 85% of the lowest daily VWAP during the 10 trading days before conversion, with a 4.99% beneficial ownership cap and a 2,000,000 share Exchange Cap until shareholder approval by November 7, 2026.
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High Cost of Capital
Carries 12% annual interest, a 125% prepayment penalty plus $750 fee, and a 150% default amount on outstanding principal and interest.
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Distress Context
Follows multiple high-cost convertible notes in July 2026 and ongoing going-concern warnings, Nasdaq delisting notices, and critically low cash reserves.
Analysis · CETY · Energy & Transportation
Clean Energy Technologies entered into a securities purchase agreement with Pacific Pier Capital II, LP, selling a $178,410 convertible promissory note for $150,000.80, netting $143,000.80 after legal fees. The note carries a 12% interest rate, matures in 12 months, and converts at 85% of the lowest daily VWAP over the prior 10 trading days — a deeply discounted, variable-price structure that can lead to significant dilution. The company must obtain shareholder approval by November 7, 2026 to issue shares beyond a 2,000,000 share cap, and an event of default would require repayment of 150% of the outstanding balance. This financing follows a pattern of high-cost, dilutive capital raises amid going-concern warnings and Nasdaq delisting notices, underscoring the company's severe cash constraints.
At the time of this filing, CETY was trading at $0.95 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $11.6M. 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.