Loan & DebtJul 8, 2026, 05:27 PM
XCF Global Secures $1M Senior Secured Loan with 25% OID
AI Summary
XCF Global, Inc. entered into a Senior Secured 25% Original Issue Discount Promissory Note and Security Agreement with Brown Stone Capital Limited. The company secured a $1,000,000 loan for a purchase price of $750,000, bearing 10% annual interest over a two-month term. The agreement includes a commitment fee of 500,000 shares and grants a first-priority security interest in company assets, with 5,000,000 shares reserved as penalty shares in case of default.
Key Highlights
- XCF Global secured a $1,000,000 senior secured loan from Brown Stone Capital Limited.
- The loan has a 25% original issue discount, resulting in a purchase price of $750,000.
- It bears 10% annual interest, payable monthly, with a non-amortizing two-month term.
- The company issued 500,000 shares of Class A Common Stock as a commitment fee.
- A first-priority security interest was granted in various company assets, excluding subsidiaries.
- 5,000,000 shares are reserved as Penalty of Default Shares, issuable upon an Event of Default.
- Mandatory prepayments are required from revenue collections and asset sales outside ordinary course.
- Default interest accrues at 18% per annum.
Price Impact
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