ConnectM Technology Solutions Announces Up to $5M Convertible Note Financing

What Happened
ConnectM Technology Solutions, Inc. (CNTM) announced on August 31, 2026 that it entered a Securities Purchase Agreement with Ascent Partners Fund LLC to raise up to $5,000,000 in a private placement of senior secured convertible promissory notes and warrants. At the initial closing the company issued a senior secured convertible promissory note (Note One) with an original principal of $200,000 (purchase price $228,571.43) and warrants to purchase common stock. Note One bears 10% annual interest, matures in August 2027, and will automatically convert into the newly designated Series C Convertible Preferred Stock upon a defined “Listing Event”; it is also convertible into common stock at the holder’s option. The company expects a second tranche of $2,300,000 to close by September 4, 2026.

Key Details

• Purchaser: Ascent Partners Fund LLC; total offering up to $5,000,000; initial tranche = $200,000 issued Aug 31, 2026.
• Collateral & security: Company granted a first-priority security interest in substantially all assets, including 160,000,000 shares of Blue Cloud Softech Solutions Limited, under a Security Agreement.
• Warrants: Exercisable for five years; number of warrant shares = (50% of initial note principal) ÷ exercise price (exercise price to be determined).
• Series C Preferred (Certificate of Designation filed Sept 3, 2026): 4,000 shares designated, $0.0001 par, $1,000 stated value per share; 10% cumulative dividends (increasing to 24% during a “Negative Event”); conversion rights (after six months following a Listing Event) with a 9.99% beneficial ownership cap; redemption and liquidation preferences (110% of stated value plus accrued dividends, with specified exceptions).

Why It Matters
This financing provides immediate capital and a committed purchaser but brings secured obligations, potential dilution, and encumbrance of significant assets (including large Blue Cloud share collateral). The convertible notes, warrants and Series C preferred carry dividend, conversion and redemption features that can affect future equity counts and cash obligations. The Purchase Agreement also includes customary restrictions (limits on incurring debt, creating liens, and certain financings) plus registration rights requiring a resale registration statement to be filed within 60 days of closing — all items investors should consider when assessing near-term liquidity, ownership dilution and the company’s capital structure.