GridAI Technologies Corp. 8-K

What Happened GridAI Technologies Corp. (f/k/a Entero Therapeutics, Inc.) announced it entered a Debt Settlement and Subscription Agreement with lender 1396974 BC Ltd. on May 14, 2026 to resolve a default under a Revolving Loan Agreement dated January 27, 2025 (maturity January 31, 2026). The lender had sent a demand letter on April 1, 2026 seeking $1,014,675 (including principal, interest, and a 20% default increase). Under the settlement, GridAI will pay $800,000 in cash (consisting of $700,000 principal and $100,000 accrued interest) and will issue 71,482 shares of common stock (deemed $3.25 per share) to satisfy remaining accrued interest of $232,315.

Key Details

• Original loan principal received: $700,000 under the January 27, 2025 Revolving Loan Agreement.
• Demand letter sent: April 1, 2026, seeking $1,014,675.
• Settlement terms (May 14, 2026): $800,000 cash payment + 71,482 common shares issued to satisfy $232,315 of accrued interest.
• Maturity date of original loan: January 31, 2026.

Why It Matters This settlement resolves the borrower’s default claim from the lender and fixes the company’s remaining obligation under the Revolving Loan Agreement. For investors, the deal means GridAI will need to use $800,000 in cash and will dilute existing shareholders by issuing 71,482 new shares to satisfy interest—both of which can affect cash position and share count. The agreement removes the immediate default dispute and potential additional penalties tied to the lender’s prior demand.