Secures $500K in Convertible Debt, Part of $2.65M Series, Amidst Financial Distress

summarizeSummary

SurgePays, Inc. secured $500,000 in new convertible debt, part of a larger $2.65 million financing series, providing crucial capital amidst severe financial distress and a going concern warning.

check_boxKey Events · Financing and Capital Events · SURG

• New Secured Convertible Note

  SurgePays, Inc. entered into a secured note purchase agreement for a $500,000 promissory note, effective June 16, 2026.

• Part of Larger Financing Series

  This note is the most recent tranche in a series of financings that began in January 2026, bringing the aggregate funding received to $2,650,000.

• High Conversion Prices and Interest Rate

  The note accrues interest at 14.5% per annum and is convertible into common stock at escalating prices ranging from $2.00 to $10.00 per share, significantly above the current stock price of $0.40.

• Junior Security Interest Granted

  The investor receives a junior security interest in all company assets, with Belleau Wood Capital LP appointed as the collateral agent.

auto_awesomeAnalysis · SURG · Technology

SurgePays, Inc. has secured an additional $500,000 through a new secured promissory note, bringing the total raised in this financing series to $2.65 million since January 2026. This capital infusion is critical for the company, which recently reported a Q1 net loss nearly matching its market capitalization and disclosed substantial doubt about its ability to continue as a going concern. The note carries a high 14.5% interest rate and grants a junior security interest, reflecting the company's precarious financial position. While dilutive if converted, the conversion prices are set significantly above the current stock price, indicating a long-term bet on a substantial recovery by the investor. The proceeds will be used for business development, general working capital, and repayment of certain senior indebtedness, providing a much-needed lifeline.