Change Agents Corp Lands $825K Loan at Steep Cost, Issues 360K Shares to Lender

summarizeSummary

Change Agents Corporation obtained an $825,000 loan but netted just $254,350 after repaying a prior loan and fees, and issued 360,000 shares to the lender. The total repayment of $1.188M over 30 weeks reflects extremely high financing costs, underscoring the company's precarious financial position.

check_boxKey Events · Financing and Capital Events · CHGA

• High-Cost $825K Loan Secured

  The company entered into a Business Loan Agreement for $825,000, receiving net proceeds of only $254,350 after repaying a prior $529,400 loan and a $41,500 administration fee. Total repayment is $1,188,000, including $363,000 in interest, over 30 weekly installments of $37,125 starting July 29, 2026.

• 360,000 Shares Issued as Forbearance Fee

  In connection with forbearance on a missed payment under the prior loan, the company issued 360,000 shares of common stock to the lender, with piggyback registration rights, adding dilution at a depressed share price.

• Confessed Judgment Provision Increases Risk

  The secured promissory note contains a confessed judgment clause, allowing the lender to obtain a judgment against the company without further notice upon default, which could accelerate enforcement and threaten assets.

• Near-Term Repayment Pressure

  Weekly payments of $37,125 begin July 29, 2026, with maturity on March 3, 2027. The high payment burden relative to the company's market cap of $2.7M raises concerns about its ability to meet obligations without further dilutive financing.

auto_awesomeAnalysis · CHGA · Technology

Change Agents Corporation has taken on a high-cost $825,000 loan from Agile Lending, but after repaying a prior loan and covering fees, it nets only $254,350. The total repayment of $1,188,000 over 30 weeks implies an effective annualized interest rate well into triple digits, signaling severe cash constraints. As part of the deal, the company issued 360,000 shares to the lender as a forbearance fee, adding dilution at a time when the stock is trading near its 52-week low. The loan includes a confessed judgment provision, allowing the lender to obtain a judgment without notice upon default, which heightens risk for equity holders.