Loan & DebtJun 4, 2026, 04:24 PM
Borealis Foods Issues $3M Convertible Note to Largest Shareholder
AI Summary
Borealis Foods Inc. has issued a $3,000,000 convertible promissory note to its largest shareholder, OXUS CAPITAL PTE LTD. The note carries a 10% annual interest rate and matures on August 29, 2026, with provisions for extension. OXUS has the option to convert the principal into Borealis Foods common shares at $1.45 per share, contingent upon obtaining necessary approvals, including potential shareholder consent. The funds are earmarked for vendor payments and working capital, with restrictions against repaying existing debt. A beneficial ownership cap of 49.9% is in place to limit dilution from conversion.
Key Highlights
- Borealis Foods Inc. issued a $3,000,000 convertible promissory note to its largest shareholder, OXUS CAPITAL PTE LTD.
- The note bears interest at 10% per annum and matures on August 29, 2026, with potential extension.
- OXUS CAPITAL PTE LTD. can convert the note into Borealis Foods common shares at $1.45 per share, subject to approvals.
- Proceeds will be used for accounts payable, vendor obligations, and working capital, not to repay existing debt.
- Conversion is limited to prevent OXUS from exceeding 49.9% beneficial ownership of Borealis Foods.
Price Impact
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