Nexalin Secures $1M Note with Onerous Terms Amid Delisting Fight

summarizeSummary

Nexalin Technology raised $1 million through a note with Streeterville Capital, but the terms include a $150,000 original issue discount, mandatory prepayment of 20% of future fundraising, and potential balance increases up to 25% on trigger events.

check_boxKey Events · Financing and Capital Events · NXL

• Note Purchase Agreement

  Nexalin entered into a Note Purchase Agreement with Streeterville Capital for a $1,170,000 unsecured promissory note, receiving $1,000,000 in gross proceeds after a $150,000 OID and $20,000 expense reimbursement.

• Mandatory Prepayment

  The note requires mandatory prepayment of 20% of any future fundraising proceeds, potentially diverting capital from operations.

• Trigger Events and Default

  Trigger events can increase the outstanding balance by up to 25%, and default interest accrues at 18% per annum.

• Maturity and Extensions

  The note matures in six months, with up to two three-month extensions available, each increasing the balance by 7.5%.

auto_awesomeAnalysis · NXL · Industrial Applications And Services

Nexalin Technology entered into a $1.17 million unsecured note with Streeterville Capital, receiving $1 million in gross proceeds after a $150,000 original issue discount and $20,000 expense reimbursement. The note matures in six months, carries no interest unless default occurs, and requires mandatory prepayment of 20% of any future fundraising. Trigger events can increase the balance by up to 25%, and default interest is 18%. This financing comes as the company faces Nasdaq delisting proceedings and a going concern warning, making the terms particularly costly and restrictive.