Healthy Extracts Inc. Enters Convertible Note Deal with Labrys Fund II

What Happened Healthy Extracts Inc. (HYEX) filed an 8-K reporting that on July 17, 2026 it entered into a Securities Purchase Agreement and issued a $258,750 promissory note to Labrys Fund II, L.P. The note matures in one year, bears a 10% per annum interest (earned in full in advance), and was issued with an original issue discount of $33,750. The company received $225,000 (minus expenses) on issuance. The filing was made on July 24, 2026.

Key Details

• Principal amount: $258,750; original issue discount (OID): $33,750.
• Proceeds: $225,000 received upon issuance (less expenses).
• Term & interest: 1-year maturity; 10% per annum interest earned in advance; no prepayment without Holder consent.
• Conversion & payments: Convertible after 180 days at the lesser of $2.00/share or 75% of the lowest closing bid in the 15 trading days before conversion. Monthly amortization payments of $36,964.28 start Jan 18, 2027 for six months unless converted.

Why It Matters This is a short-term financing arrangement that provides immediate cash but includes features investors should watch: the note can convert into common stock at a potentially low price (which could dilute existing shareholders), interest was taken up front reducing net proceeds, and the note cannot be prepaid without the lender’s consent. The scheduled amortization payments and one-year maturity affect near-term cash obligations and the company’s short-term liquidity plan.