LegalJul 14, 2026, 01:11 PM
Bion Settles Fair Oaks Litigation, Issues Convertible Note
AI Summary
Bion Environmental Technologies, Inc. announced the settlement of all outstanding litigation with Hamstra Builders, Inc. related to the construction of its Fair Oaks demonstration facility. The agreement includes the dismissal of all mechanics liens and lawsuits. As part of the settlement, Bion will issue a convertible promissory note to Hamstra for $1,774,512.72, with a 10% interest rate and a maturity date of December 31, 2026. Additionally, the company extended the maturity dates of several other convertible promissory notes held by various groups.
Key Highlights
- Bion settled litigation with Hamstra Builders, Inc. regarding the Fair Oaks facility construction.
- The settlement dismisses all mechanics liens and related litigation.
- Bion will issue a convertible promissory note to Hamstra for $1,774,512.72.
- The note carries 10% interest and matures on December 31, 2026.
- A $653,915 cash payment will be made to Hamstra upon a future Bion financing, for Hamstra's obligation to Dilling Group.
- The remaining balance of the note will convert into Bion common stock at the future financing price.
- Existing Secured Convertible Promissory Notes and May 2024 Convertible Promissory Notes were extended to December 31, 2026.
- The Bion Loan Group's Secured Convertible Promissory Note was extended to January 31, 2027.
Price Impact
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