Loan & DebtJun 10, 2026, 05:16 PM
Netcapital Inc. Issues $182,120 Promissory Note for Working Capital
AI Summary
Netcapital Inc. has entered into a Securities Purchase Agreement with Vanquish Funding Group Inc. to issue a promissory note for $182,120, with a purchase price of $157,000. The net proceeds of $150,000 will be used for general working capital. The note carries a 13% interest charge and matures on March 30, 2027, with specific repayment terms and significant default penalties, including potential conversion into equity at a discounted price. The transaction was conducted under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act.
Key Highlights
- Netcapital Inc. issued a $182,120 promissory note to Vanquish Funding Group Inc.
- The note was sold for a purchase price of $157,000, reflecting a $25,120 original issue discount.
- Net proceeds of $150,000 will be used for general working capital purposes.
- The note matures on March 30, 2027, with a one-time interest charge of 13%.
- Total repayment required is $205,795, with payments starting November 30, 2026.
- Default interest rate is 22% per annum, with potential for 150% or 200% of outstanding amounts upon default.
- The note allows conversion into common stock at 65% of the lowest trading price under certain conditions.
Price Impact
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