XCF Global, Inc. 8-K

What Happened
XCF Global, Inc. (SAFX) filed an 8-K reporting that on July 16, 2026 it entered into a Senior Secured 25% Original Issue Discount Promissory Note and Security Agreement with Hollywood Horizons, Inc. The loan has a face amount of $400,000 but a 25% original issue discount (OID), resulting in a purchase price of $300,000. The note bears interest at 10% per annum (payable monthly), is non-amortizing with a 60-day (two-month) term, and is due in full 60 days after funding; optional prepayment is allowed without penalty.

Key Details

• Loan amount: $400,000 face value with 25% OID (effective proceeds $300,000).
• Interest/maturity: 10% annual interest, interest calculated on a 360-day year, payable monthly; maturity 60 days after funding; default interest 18% per annum.
• Equity fees and reserves: Company issued a non‑refundable commitment fee of 500,000 shares of Class A common stock and must reserve 5,000,000 authorized but unissued shares as “Default Shares” to be issued to Hollywood upon an Event of Default.
• Security and scope: Hollywood received a first‑priority security interest in XCF Global, Inc.’s inventories, accounts, environmental attributes, deposit/securities accounts, equipment, chattel paper and proceeds; the lien does not extend to subsidiaries’ assets. The loan is the sole responsibility of XCF Global, Inc. (no subsidiary guarantees).

Why It Matters
This transaction provides XCF Global with short‑term secured financing but at a high effective cost: a 25% original issue discount plus a 10% stated interest rate (and 18% default rate). Investors should note the lender has first priority over XCF Global’s operating assets (not subsidiaries’) and the company has committed equity (500,000 shares issued and 5,000,000 shares reserved on default), which can dilute shareholders if default occurs or additional equity arrangements follow. The filing also references related securities agreements (warrants and purchase/registration agreements) filed as exhibits.