Clean Energy Technologies, Inc. Enters Convertible Note Financing with Walnut Capital

What Happened

• Clean Energy Technologies, Inc. announced on its Form 8-K that it entered into a securities purchase agreement with Walnut Capital, LLC and issued a $166,500 convertible promissory note. The SPA is dated September 8, 2026; the transaction closed and was funded on September 9, 2026. The Company received $150,000 in net proceeds to be used for general working capital.

Key Details

• Note principal: $166,500; purchase price / net proceeds to company: $150,000.
• Interest and repayment: one-time 12% interest charge at issuance; payable in 10 monthly payments of $18,648 starting December 8, 2026 (payments continue on the 2nd of each month), totaling $186,480.
• Conversion on default: holder may convert following default at a price equal to 85% of the lowest closing bid during the ten trading days before conversion; however conversion is limited so the holder’s beneficial ownership cannot exceed 4.99% (or exceed 19.99% if Nasdaq Rule 5635(d) shareholder approval is not obtained).
• Conversion fee: the holder may deduct $1,500 from each conversion to cover its fees.

Why It Matters

• This creates a new short-term financial obligation and provides the company with $150,000 in cash for working capital. The repayment schedule and one-time 12% interest mean the company will need to make relatively large monthly cash outflows over the next 10 months.
• The note includes a conversion feature that could result in equity issuance if the note goes into default, subject to specified ownership caps and Nasdaq approval limits, so there is a possible—but capped—dilution pathway for shareholders.
• Investors should note both the immediate cash benefit and the near-term repayment pressure, plus the potential for conversion-related dilution if the company defaults on the note.