Loan & DebtJun 2, 2026, 05:06 PM
Solowin Holdings secures $6M in financing via PPP #2
AI Summary
Solowin Holdings, Ltd. secured $6,000,000 in financing by issuing Pre-Paid Purchase #2 (PPP #2) to Streeterville Capital, LLC, with a principal amount of $6,480,000 and an 8% annual interest rate. The proceeds are designated for working capital and corporate purposes. The agreement includes provisions for monthly cash payments of $900,000, potential equity issuance to the investor if payments are missed, and a Side Letter for an additional 1,000,000 Class A Shares. Default terms allow for a 10% increase in the outstanding balance per trigger event and an 18% default interest rate.
Key Highlights
- Solowin Holdings issued Pre-Paid Purchase #2 (PPP #2) to Streeterville Capital, LLC.
- PPP #2 has a principal amount of $6,480,000, purchased for $6,000,000, including a $480,000 original issue discount.
- The purchase accrues interest at 8% per annum and is unsecured, with proceeds for working capital.
- Solowin may make monthly cash payments of $900,000 starting September 1, 2026.
- If payments are missed, the investor can require issuance of Class A Shares at 85% of a discounted price.
- Solowin also agreed to issue 1,000,000 Class A Shares to the investor for $0.0001 per share via a Side Letter.
- A Trigger Event allows the investor to increase the outstanding balance by 10% (up to 3 times).
- Upon default, the investor can accelerate the balance, making it due immediately with 18% annual interest.
Price Impact
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