NextNRG, Inc. Enters $2.0M Senior Secured Convertible Note Financing

What Happened NextNRG, Inc. (NXXT) announced it entered into a securities purchase agreement and closed a financing on July 24, 2026, issuing a senior secured convertible note with an aggregate original principal of $2,000,000. The company received approximately $1.8 million in gross proceeds and intends to use the net proceeds for general corporate purposes and working capital. The Note is secured by substantially all of the company’s assets and guaranteed by its subsidiaries.

Key Details

• Closing date: July 24, 2026; original principal: $2,000,000; gross proceeds to company: ~$1.8M.
• Interest and term: 12% per annum interest; maturity date October 24, 2026 (with possible 3‑month extension by consent or investor option). Interest increases by 9 percentage points during any Event of Default.
• Repayment premium and redemption: On maturity (or if redeemed), company must pay (i) a Payment Premium equal to 50% of outstanding principal, (ii) all outstanding principal, and (iii) accrued interest and any late charges. Company may redeem all outstanding amounts with 30 days’ notice for the same total amount.
• Conversion and investor rights: Note is convertible at investor’s option into common stock at $0.75 per share. Investor has the right to participate in 100% of any subsequent capital raise until the later of 4 months after closing or when the Note is no longer outstanding; the company agreed not to issue certain securities in any “Subsequent Placement” while the Note remains outstanding (subject to exceptions).
• Security and guarantees: Note is secured under a Security and Pledge Agreement granting a security interest in substantially all assets; each material subsidiary provided a guaranty.

Why It Matters This is a material short‑term financing that provides NextNRG with immediate cash (~$1.8M) for operations but creates a significant near‑term cash obligation and potential dilution. The repayment terms require the company to repay principal plus a 50% premium and accrued interest by the October 24, 2026 maturity (subject to extension), which is a large cash outlay in the near term or could lead to conversion into shares at $0.75 per share. The security interest on substantially all assets and the subsidiary guarantees increase the lender’s priority over company assets. Investor participation rights and issuance restrictions may affect NextNRG’s flexibility to raise additional capital in the short term. Investors should note the conversion price, high effective cost of capital (interest plus premium), and the short maturity when assessing company liquidity and potential dilution.