Item 1.01 Conclusion of a Material Definitive Agreement.
In September, Clean Energy Technology, Inc., a Nevada company (the “Company”), has entered into a securities purchase agreement (the “Securities Purchase Agreement”) and a $ 226,345 Original remittance note due September 7, 2022 with interest at 10% per annum (the “Note”) with Geneva Roth Remark Holdings Inc., a new York company (“Geneva”).
Under the Bond, the initial issue haircut is $ 23,345.00, compensation of the Company $ 203,000; principal and interest to be paid in 10 monthly installments from October 30, 2021, in a quantity of $ 23,828.44 per month, with a grace period of 5 days for each payment. An event of default under the Note occurs for the Company’s failure to pay interest and principal after the application of the grace period, breach of covenants, representations and warranties, receivership and bankruptcy, the delisting of the Company’s shares, failure to comply with the deadlines, deposits with the Security and Trade Commission, financial restatements, cross defaults with agreements with Geneva and replacement of the transfer agent. In the event of default, the Note will become immediately due and the Company will be required to pay 150% of the sum of the principal outstanding, accrued interest and default interest of 22%. If the default amount is not paid within 5 days of the event of default, Geneva may convert these outstanding amounts into ordinary shares of the Company with a 30% discount on the lowest closing bid price for the ordinary shares for the five trading days preceding the conversion. , subject to the Geneva limit of 4.99% ownership at any time before the full conversion of the shares.
The Securities Purchase Agreement contains representations, warranties, covenants and events of default that are usually found in similar transactions.
The foregoing does not purport to be a complete description of the rights and obligations of the parties under the Securities Purchase Agreement and the Note and is qualified by reference to the Securities Purchase Agreement and the Note filed as Exhibits 10.130 and 10.131, respectively, of this current Report on Form 8-K.
Item 9.01 Financial statement and supporting documents.
Exhibit No. Description
10.130 Form of Securities Purchase Agreement with Geneva Roth Remark
Holdings Inc., dated as of August 31, 2021.
10.131 Form of $226,345 Original Issue Discount Note, due September 7,
2022, with Geneva Roth Remark Holdings Inc. carrying 10% interest
104 Cover Page Interactive Data File (embedded within the Inline XBRL
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