MacKenzie Realty Capital, Inc. 8-K

What Happened
MacKenzie Realty Capital, Inc. (MKZR) announced on March 6, 2026 that it entered into a Note Purchase Agreement with Streeterville Capital, LLC to issue secured promissory notes with an initial principal balance of up to $1,095,000. Streeterville provided $1,000,000 net cash at closing (the Initial Purchase Price). The financing is secured by collateral from the company’s qualified REIT subsidiary, MRC QRS, Inc., and includes a guaranty by MRC QRS and a stock pledge of MRC QRS common stock.

Key Details

• Initial principal balance: $1,095,000; initial funding (net): $1,000,000 (reflecting a $90,000 original issue discount and a $5,000 transaction expense included in the principal).
• Interest / payment terms: monthly interest-only payments for the first five months; beginning month 6, monthly payments of $91,250 plus accrued interest until paid in full.
• Prepayment & fees: prepayment on/before 90 days requires cash payment equal to 107% of prepaid amount; after 90 days, prepayment at 100%. A one‑time Monitoring Fee is added if the note remains outstanding on the 90‑day anniversary.
• Security and credit support: first‑priority security interest in collateral of MRC QRS (Security Agreement), an absolute guaranty from MRC QRS, and a Stock Pledge Agreement covering MRC QRS common stock. Trigger events and default remedies permit increases to the outstanding balance (15% per Major Trigger Event; 5% per Minor Trigger Event, each capped) and acceleration; post‑default interest may be up to 22% per annum (or the legal maximum if lower).

Why It Matters
This transaction creates a new secured debt obligation for MacKenzie Realty Capital and its qualified REIT subsidiary, with $1.0 million of cash received immediately and up to $1.095 million in principal exposure. The loan terms include significant fees, accelerated remedies and heavy default penalties that could increase the outstanding balance and give the investor rights to pledged collateral and subsidiary stock. Investors should note the company’s increased leverage and the specific payment, prepayment, and default mechanics disclosed in the 8‑K and related transaction documents.