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Connexa Sports Technologies | 8-K: Current report

SEC announcement ·  Feb 21 16:52
Summary by Moomoo AI
Connexa Sports Technologies Inc., a Delaware-based company, reported on February 21, 2024, that it has entered into a Waiver, Warrant Amendment and Second Loan and Security Modification Agreement with its lenders and an agent. This agreement follows a series of financial arrangements that began with a loan and security agreement on January 6, 2023, for a note of up to $2 million, and subsequent modifications allowing for an additional $1 million loan and the issuance of warrants. The company has agreed to modify the terms of the note to make it convertible into nearly 10 million shares of common stock at a conversion price of $0.32, which is considered the 'Minimum Price' under Nasdaq rules. The lenders have committed to converting all amounts owed under the note...Show More
Connexa Sports Technologies Inc., a Delaware-based company, reported on February 21, 2024, that it has entered into a Waiver, Warrant Amendment and Second Loan and Security Modification Agreement with its lenders and an agent. This agreement follows a series of financial arrangements that began with a loan and security agreement on January 6, 2023, for a note of up to $2 million, and subsequent modifications allowing for an additional $1 million loan and the issuance of warrants. The company has agreed to modify the terms of the note to make it convertible into nearly 10 million shares of common stock at a conversion price of $0.32, which is considered the 'Minimum Price' under Nasdaq rules. The lenders have committed to converting all amounts owed under the note before the next shareholder meeting, with the company seeking shareholder approval by May 3, 2024, to lower the exercise price of the lender's warrants to $0.16 per share. Additionally, the company's subsidiary, Slinger Bag Americas Inc., is required to fund an escrow account with $2 million within ten weeks of February 21, 2024, and to pay the difference between $6 million and the gross proceeds from the sale of shares issued through note conversions and warrant exercises. The agreement also stipulates that all liens and security interests will be released upon full repayment of the note, and the company will file a registration statement for the shares issuable upon conversion of the note within five business days.

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