Stewards, Inc. Secures Up to $22M in Convertible Notes
Stewards, Inc. has entered into a securities purchase agreement with Crom Structured Opportunities Fund I, LP, for a private placement offering of unsecured convertible promissory notes totaling up to $22 million. The initial tranche involved the issuance of a $6.05 million note for a purchase price of $5.5 million, with a 10% original issue discount and a 12-month maturity. The note accrues 10% interest and is convertible into the company's common stock under certain conditions, including a conversion price set at 90% of the lowest daily VWAP during a specified period. The company has also agreed to reserve a significant number of shares for potential conversion and has provided the investor with certain participation and most favored nation rights in future financings.
Key Highlights
- Stewards, Inc. entered into a securities purchase agreement for up to $22 million in convertible promissory notes.
- The company issued an initial unsecured convertible promissory note for $6.05 million, with a purchase price of $5.5 million.
- The note has a 10% original issue discount and a maturity of 12 months.
- Interest on the note is 10% and can convert into common stock at 90% of the lowest daily VWAP over five trading days prior to conversion.
- The company will reserve 7 million shares or 2.5 times the conversion amount for potential stock issuance.
Price Impact
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