Abits Group Inc (ABTS) Form 6-K — Sep 17, 2026
Abits Group Inc entered into a Securities Purchase Agreement on September 14, 2026 with an institutional investor for a convertible promissory note of US$16,470,588.24 principal, purchased for up to US$14,000,000 at a 15% original issue discount with 13% interest fully earned and guaranteed for twelve months, funded in three tranches of US$8.0 million, up to US$2.5 million, and up to US$3.5 million.
Key figures
- Interest Rate
- 13% (fully earned and guaranteed for twelve months)
- Gross Proceeds
- up to US$14,000,000 (note purchase price)
- Eloc term
- 36 months
- Tranche 1
- 8000000
- Tranche 2
- up to US$2,500,000 (on F-1 filing)
- Tranche 3
- up to US$3,500,000 (on F-1 effectiveness)
- Note maturity
- 240 calendar days after final tranche is funded
- Commitment fee
- 7500000
- Default penalty
- outstanding amounts increase by 150%; additional 20% per annum interest during default
- Eloc commitment
- 250000000
- F1 filing deadline
- within 15 calendar days of Closing
- Lockup period days
- 180
- Eloc purchase price
- 95% of lowest daily VWAP during a 3-trading-day valuation period
- Note conversion price
- 75% of lowest closing bid price during the 10 trading days prior to conversion notice
- Investor board nominees
- 3
- Original issue discount
- 15%
- Placement agent expenses
- up to US$100,000 reimbursable plus 1% non-accountable allowance
- Placement agent warrants
- 5% of shares placed, 5-year term, at 115% of offering price
- F1 effectiveness deadline
- within 45 calendar days of Closing
- Placement agent cash fees
- 8% of gross proceeds raised; 3% of ELOC drawdowns
- Beneficial ownership limit
- 4.99% (may be increased to no more than 9.99%)
- Prefunded warrant exercise price
- 0.00001
- Reverse split max aggregate ratio
- 250:1
AI analysis
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