Loan & DebtJun 16, 2026, 04:22 PM
Netcapital Secures $290K Promissory Note, Issues Warrants
AI Summary
Netcapital Inc. closed a Securities Purchase Agreement with FirstFire Global Opportunities Fund, LLC, securing a $290,000 promissory note and issuing a warrant to purchase 250,000 common shares. The company received net cash proceeds of $224,500 after an original issue discount and various fees. The note carries a one-time 12% interest charge and matures on June 9, 2027, with amortization payments beginning in December 2026. Shareholder approval is required for the full issuance of shares under the note and warrant.
Key Highlights
- Secured a $290,000 promissory note from FirstFire Global Opportunities Fund, LLC.
- Issued a warrant to purchase 250,000 common shares at an initial exercise price of $0.50.
- Received net cash proceeds of $224,500 after a $40,000 original issue discount and $25,500 in fees.
- Note includes a one-time 12% interest charge ($34,800) and matures on June 9, 2027.
- Amortization payments begin December 9, 2026, with an initial payment of $162,400.
- Note is convertible at holder's option, with conversion price at 75% of lowest bid price (floor $0.10).
- Aggregate share issuance limited to 1,569,579 shares without shareholder approval.
- Proceeds will be used for business development and general working capital.
Price Impact
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