Research Reports

Key takeaways

Issued $406,000 principal convertible promissory note to Pacific Pier Capital II, LP for $357,280 purchase price, netting $350,280 after $7,000 legal fees.

Note carries 12% annual interest, matures April 20, 2027, convertible after 6 months at 85% of 10-day VWAP with 4.99% beneficial ownership cap.

Exchange Cap limits issuance to 2,000,000 shares until Nasdaq shareholder approval obtained by May 1, 2026.

Proceeds restricted to business development and service provider payments, excluding debt repayments to insiders or affiliates.

Transaction relies on Section 4(a)(2) and Rule 506(b) exemptions from securities registration.

Full analysis

Clean Energy Technologies, Inc. secured $350,280 in net funding through a convertible promissory note with Pacific Pier Capital II, LP, providing immediate liquidity for business development and vendor payments while imposing strict use-of-proceeds restrictions that prevent insider debt repayments or investments outside existing operations. The note's 12% interest rate and conversion feature at a 15% discount to recent VWAP introduce dilution risk, capped initially at 2,000,000 shares pending shareholder approval required by May 1, 2026, with SEC filings to follow. The 4.99% beneficial ownership limit and conversion fees mitigate some immediate overhang, but the structure signals reliance on high-cost, dilutive financing typical for growth-stage companies facing capital constraints. Investors should monitor upcoming shareholder vote compliance and potential share issuance impacts on ownership and Nasdaq listing standards.

CETY · Clean Energy Technologies, Inc.

Summary

Key takeaways

Full analysis