C2 Blockchain Secures $1.33M in Convertible Notes
C2 Blockchain, Inc. (CBLO) has entered into two significant financing agreements. The first is a $130,000 Promissory Note with Auctus Fund, LLC, which was issued at a discount, incurring a 12% interest charge, and is convertible into common stock. The company received net proceeds of $108,000 from this transaction. The second agreement is a Senior Secured Convertible Promissory Note with Leonite Fund I, LP, for up to $1,200,000, including a $200,000 original issue discount and a 10% annual interest rate. C2 Blockchain received $93,000 in net proceeds from the initial tranche of this note, which is secured by company assets and convertible into common stock. Both transactions involved the issuance of warrants and restricted stock, and were conducted under exemptions from registration requirements.
Key Highlights
- C2 Blockchain secured a $130,000 Promissory Note from Auctus Fund, LLC, receiving net proceeds of $108,000 after fees and discount.
- The Auctus Note has a 12% interest charge, matures in one year, and is convertible into common stock at 60% of the lowest traded price.
- C2 Blockchain also entered into a Securities Purchase Agreement for up to $1,200,000 with Leonite Fund I, LP.
- The Leonite Note includes a $200,000 original issue discount and bears 10% annual interest.
- Initial funding from Leonite was $100,000, with $93,000 net proceeds after legal fees.
- The Leonite Note is secured by substantially all company assets and is convertible at $0.05 per share.
- Warrants for 5,200,000 shares at $0.05 were issued with the Auctus Note.
- 1,000,000 restricted shares and warrants for 2,000,000 shares at $0.10 were issued with the Leonite Note.
Price Impact
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