Second OID Note Tranche Brings $300K, But Nearly All Goes to Debt Service
CHGA sits 40% above its 52-week low of $1.795 on light trading volume (0.2× avg).
Summary
A second OID note tranche raised $300K, but nearly all of it went to repay existing debt. The company also issued 100K pre-funded warrants, and the CSO advanced $20K to cover a loan payment.
Key Events · Financing and Capital Events · CHGA
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Second OID Note Tranche Closed
On September 30, 2026, the company issued $336,000 in principal (including $36,000 OID) for $300,000 in gross proceeds.
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Proceeds Used for Debt Repayment
The proceeds repaid $125,000 of 18.75% June 2025 notes, $125,000 toward Series F Preferred redemption, and a $37,125 installment to the lead lender.
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100K Pre-Funded Warrants Issued
Warrants are exercisable at $0.0001 per share, subject to 4.99%/9.99% beneficial ownership limits and a Nasdaq 19.99% cap.
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Restrictive Covenants Added
The notes carry a most-favored-nations provision, a ban on variable-rate transactions, and negative covenants on additional debt.
Analysis · CHGA · Technology
A second tranche of the September 2026 OID notes closed, raising $300,000 in gross proceeds against $336,000 in principal. Nearly all of it went to debt service — $125,000 to repay 18.75% June 2025 notes, $125,000 toward a Series F Preferred redemption, and a $37,125 installment to the lead lender — leaving little for operations. The deal also added 100,000 pre-funded warrants with a nominal $0.0001 exercise price, and the notes carry restrictive covenants including a most-favored-nations clause and a ban on variable-rate transactions. Separately, the CSO advanced the company $20,000 on September 28 to make a loan payment, underscoring the cash constraints. This continues a pattern of high-cost, warrant-sweetened financing disclosed throughout the timeline.
How filings like this one have moved
In the 30 days to Nov 1, 2026, 32.5% of the 1969 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. 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, CHGA was trading at $2.51 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.8M. The 52-week trading range was $1.80 to $49.20. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.