Loan & DebtMay 29, 2026, 04:58 PM
CID Holdco Issues $287,500 Convertible Note; Execs Cut Salaries
AI Summary
CID Holdco, Inc. completed a third closing under a Note Purchase Agreement, issuing a senior secured convertible promissory note with a face amount of $287,500 for cash proceeds of $230,000. The 8% interest note matures in six months and is convertible into common stock at a variable price. Additionally, the company's CEO, CFO, CTO, and Chief Revenue Officer voluntarily agreed to reduce and defer their salaries to support ongoing financing efforts.
Key Highlights
- CID Holdco issued a senior secured convertible promissory note with a $287,500 face amount.
- The company received $230,000 in cash proceeds, reflecting a 20% original issue discount.
- The note bears 8% annual interest, with the first six months guaranteed, and matures in six months.
- Proceeds are designated for scheduled monthly payments on a prior note to J.J. Astor & Co.
- The note is convertible into common stock at 80% of the lowest 15-day volume-weighted average price.
- CEO, CFO, and CTO reduced salaries to minimum state law requirements; CRO reduced salary by 50%.
- These officers also agreed to defer their base salaries during this period.
Price Impact
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