Clean Energy Technologies Enters Convertible Note Financing ($125K)

What Happened

• Clean Energy Technologies, Inc. (CETY) announced it entered into a securities purchase agreement with 1800 Diagonal Lending LLC and sold a convertible promissory note that closed on July 29, 2026. The note has a principal amount of $147,840 and the investor paid $132,000; after fees the Company received $125,000 for general working capital.

Key Details

• Principal amount: $147,840; Purchase price: $132,000; Net funding to company: $125,000.
• Fees: $2,500 legal expenses paid from proceeds and $4,500 retained by investor as a due diligence fee.
• Note terms: Maturity April 30, 2027; one-time interest charge of 12% on issuance; payable in 9 monthly payments of $18,397.78 starting August 30, 2026.
• Conversion: Note is convertible only following default at holder’s election at a conversion price equal to 85% of the lowest closing bid in the 10 trading days before conversion; conversion is subject to a 4.99% beneficial ownership cap and limits under Nasdaq Rule 5635(d). The holder may deduct $1,500 from each conversion to cover fees.

Why It Matters

• This transaction provides the company with near-term cash (net $125K) to support operations but increases short-term debt and scheduled cash outflows through monthly payments starting August 2026.
• Conversion terms create potential dilution if conversion occurs after a default, though ownership caps and Nasdaq-related limits constrain large immediate dilution. The 12% one-time interest and per-conversion fee reduce the economic value of the financing to the company and increase the amount owed if not repaid.
• Investors should note the size and short maturity of the obligation (due April 2027) and weigh the near-term liquidity benefit against repayment obligations and contingent dilution risk.