Loan & DebtMay 19, 2026, 05:07 PM
Aether Holdings Secures $3.24M Note with 8% Interest
AI Summary
Aether Holdings, Inc. entered into a note purchase agreement with Streeterville Capital, LLC, issuing a secured promissory note with an original principal amount of $3,240,000. The company received $3,000,000 in funding after accounting for a $240,000 original issue discount and $30,000 in transaction expenses. The note matures in 18 months and carries an 8.0% annual interest rate, compounded daily, with obligations secured by a first-position security interest in substantially all company assets and intellectual property, along with a subsidiary guaranty. The agreement includes various covenants and trigger events that could lead to increased outstanding balance or immediate repayment.
Key Highlights
- Aether Holdings issued a secured promissory note for an original principal amount of $3,240,000.
- The company received $3,000,000 in funding after a $240,000 original issue discount and $30,000 in transaction expenses.
- The note matures in 18 months and bears an 8.0% annual interest rate, compounded daily.
- Obligations are secured by a first-position security interest in substantially all company assets and intellectual property.
- Company subsidiaries provided a guaranty for the obligations.
- The company may prepay the note in full at any time by paying 110% of the outstanding balance.
- Covenants restrict granting liens, selling equity or voting rights in subsidiaries, and incurring certain debt.
- Trigger events can increase the outstanding balance by 5% or 15% or lead to immediate repayment at a mandatory default amount.
Price Impact
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