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Clean Energy Tech announces balance sheet improvement due to restructuring

Clean Energy Technologies announces significant balance sheet improvement due to a key financial structuring. Mast Hill Fund, L.P., a long-term investor and partner of CETY converted an aggregate of $1.9M notes including accrued interest from liability to equity. This increases shareholder’s equity from $5.38M to approximately $7.33M. Liabilities have decreased from $5.7M to approximately $3.75M because of this debt restructuring. The terms of the debt restructuring contribute to a favorable scenario for CETY, increasing CETY’s financial flexibility and allows more financial resources to be deployed for growth initiatives. This conversion from debt to preferred equity offers multiple key benefits: Firstly, it enables the notes to be converted at a 20% discount to the market price, thereby closely aligning the investor’s interests with the company’s performance. Furthermore, the converted notes no longer require mandatory redemption in cash and cannot default, significantly reducing financial pressures. Additionally, the notes will now receive a 15% dividend, replacing the previous 15% interest rate, until the preferred shares are converted or settled. Moreover, the converted securities will be subject to customary transfer restrictions. Finally, the company retains the option to settle the notes using future capital raises at its own discretion.

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