APPLIED ENERGETICS, INC. (OTCMKTS:AERG) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On August 31, 2020, Applied Energetics, Inc. completed its bridge financing consisting of the issuance of 10% Promissory Notes in the aggregate original principal amount of $5,411,698, which amount includes $1,087,698 which were issued upon exchange for principal and/or interest due on outstanding promissory notes that were previously issued by the company. These notes bear interest at a rate of 10% per annum. At any time after October 15, 2020 until July 15, 2021, the date of maturity, (i) each investor may elect to convert these notes into shares of our common stock, at a conversion price of $0.30 per share and (ii) the company may elect to prepay, either in cash or in shares of common stock at a price of $0.30 per share, at the option of the holder, the amount of principal and interest then outstanding under each note. In the event we elect to prepay the notes, we will notify the holders, each of whom will then have five business days to notify the company if they prefer to receive such prepayment in cash or stock. These notes are payable in full at maturity. In lieu of repayment of the principal and interest on the notes at maturity, the company may elect to convert the amounts due into shares of common stock at a price of $0.15 per share.
Item 3.02 Unregistered Sales of Equity Securities.
Commencing on October 15, 2020, the 10% Promissory Notes described in Item 2.03 of this Current Report on Form 8-K become convertible by the holders thereof at a fixed conversion price of $0.30 per share. As of that same date, the company may elect to prepay these notes, either in cash or in shares of common stock at a price of $0.30 per share, at the option of the holder, the amount of principal and interest then outstanding under each note. At maturity, these notes are repayable by the company in either cash or stock at a price of $0.15 per share. These notes were, and any shares issued upon conversion of these notes will be, issue to accredited, sophisticated purchasers and not in connection with any public offering, to Section 4(a)(2) of the Securities Act of 1933.
Item 9.01 Financial Statement and Exhibits.
Exhibits
| 4.1 | Form of Purchase Agreement for 10% Promissory Notes |
| 4.2 | Form of 10% Promissory Notes |
APPLIED ENERGETICS, INC. Exhibit
EX-4.1 2 ea126440ex4-1_appliedener.htm FORM OF PURCHASE AGREEMENT FOR 10% PROMISSORY NOTES Exhibit 4.1 SECURITIES PURCHASE AGREEMENT THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”),…
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About APPLIED ENERGETICS, INC. (OTCMKTS:AERG)
Applied Energetics, Inc. is a shell company. The Company focuses on reactivating its previous business activities. The Company was engaged in the design, development and manufacture of applied energy systems for military and commercial applications and ultra-short pulse lasers and high voltage lasers for commercial applications. The Company is seeking to sell or license its technology. The Company is focusing on developing ultra-short pulse lasers (UPS). It is preparing for the next stage of laser guided energy (LGE) development that involves the development of USP laser technologies. These lasers will allow for LGE weapon systems to be mounted on mobile platforms for multiple anti-terrorist missions, including counter measures against drones and other hostile inbound objects, counter-improvised explosive devices (C-IED) and vehicle stopping, among others.
