Secures $385K Convertible Note with Highly Dilutive Terms and Warrants

summarizeSummary

International Land Alliance Inc. obtained a $385,000 convertible note and warrants with highly dilutive terms, signaling ongoing financial distress and a need for capital despite unfavorable conditions.

check_boxKey Events · Financing and Capital Events · ILAL

• Secured Convertible Promissory Note

  The company entered into a Securities Purchase Agreement for a convertible promissory note with an accredited investor for up to $385,000, with an original discount of $35,000, resulting in net proceeds of $350,000.

• Highly Dilutive Conversion Terms

  The note is convertible into common stock at the lesser of $6.00 per share or 65% of the lowest traded price during the 20 trading days preceding conversion, indicating significant potential dilution for existing shareholders.

• Issued Warrants

  The company also issued a warrant to purchase 48,125 shares of common stock at an exercise price of $10.00 per share, adding further potential future dilution.

• Reinforces Financial Distress

  This financing follows recent 10-K and 10-Q filings that reported severe financial downturns, reiterated going concern warnings, and disclosed massive share dilution, underscoring the company's precarious financial position.

auto_awesomeAnalysis · ILAL · Real Estate & Construction

International Land Alliance Inc. secured a convertible promissory note for up to $385,000, with net proceeds of $350,000 after an original discount. While this provides some capital, the conversion terms, allowing conversion at 65% of the lowest traded price, are highly dilutive and indicative of a company in financial distress. This financing, coupled with the issuance of warrants, significantly increases the risk of further dilution for existing shareholders. This event reinforces the severe financial downturn and going concern warnings previously reported in the company's recent 10-K and 10-Q filings.