Loan & DebtNov 6, 2026, 04:15 PM
NEXTNRG Exchanges $7M Debt for Preferred Equity
AI Summary
NEXTNRG, Inc. announced a debt exchange agreement with its CEO, Michael D. Farkas, where $7 million in outstanding debt, accrued interest, and personal guarantee fees were exchanged for 7,000 shares of newly designated Series D Convertible Voting Preferred Stock. This transaction aims to strengthen the company's stockholders' equity and support its efforts to regain compliance with Nasdaq's listing requirements. The Series D Preferred Stock carries a $1,000 stated value, an 18% annual dividend rate, and is convertible into common stock at $2.20 per share. The company also noted its previously executed 1-for-10 reverse stock split.
Key Highlights
- NEXTNRG exchanged $7M in debt, accrued interest, and fees for 7,000 shares of Series D Convertible Voting Preferred Stock.
- The exchanged debt included $3.63M in principal, $2.75M in accrued interest, and $620,907 in accrued personal guarantee fees.
- The Series D Preferred Stock has a stated value of $1,000 per share and accrues cumulative dividends at an 18% annual rate.
- The conversion price for Series D Preferred Stock into common stock is initially $2.20 per share.
- This debt exchange is expected to eliminate $7M in indebtedness and strengthen stockholders' equity, aiding Nasdaq compliance efforts.
- Michael D. Farkas, CEO, exchanged debt owed to him for preferred equity, a related-party transaction approved by the Audit Committee and Board.
Price Impact
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