Aeries Technology Agrees to Settle $1.14M Liability Using Share Collateral

What Happened

• Aeries Technology, Inc. announced on August 3, 2026 that it entered a Letter Agreement with Sea Otter Trading, LLC to settle a Payment Liability of $1,141,461 arising from a November 3, 2023 prepaid forward/forward purchase arrangement.
• Under the agreement Aeries will make an initial cash payment of $100,000 and then monthly amortization payments of $75,000 starting September 15, 2026. Interest accrues at 7.5% per year, calculated monthly (no compounding) and paid monthly.
• As collateral, Aeries will issue 145,183 Class A ordinary shares (par value $0.0008) to Sea Otter within 15 business days; additional shares will be issued if the collateral’s market value falls below the outstanding Payment Liability.

Key Details

• Payment Liability: $1,141,461.00
• Initial cash payment: $100,000; monthly payments: $75,000 beginning 9/15/2026
• Interest rate: 7.5% per annum, monthly calculation, paid monthly
• Collateral: 145,183 Class A ordinary shares delivered within 15 business days; Sea Otter may only sell collateral shares at prices not below $8.40 per share, with proceeds up to $8.40/share applied to the liability and any excess retained by Sea Otter
• If Sea Otter receives cash toward the liability, three months after each quarter’s end it will return or cancel shares with market value equal to cash payments received that quarter

Why It Matters

• This agreement reduces Aeries’ immediate cash burden by spreading repayment of the $1.141M obligation over time while providing Sea Otter share collateral.
• Investors should note the issuance of shares as collateral is dilutive in the short term (145,183 shares issued initially and additional possible issuances if needed) and the company will incur a 7.5% interest expense on the outstanding balance.
• The collateral arrangement limits Sea Otter’s ability to sell the shares while Aeries remains current, but allows sales at or above $8.40 per share that will be applied to reduce the liability — a mechanic that can affect share supply and the timing of liability reduction.
• The filing also references Item 3.02 concerning unregistered sales of equity securities to the extent required by applicable rules.