Clean Energy Technologies (NASDAQ:CETY) Enters into Securities Purchase Agreement with Mast Hill Fund, L.P.

On January 16, 2025, Clean Energy Technologies, Inc., a company trading on the Nasdaq Stock Market under the symbol CETY, signed a securities purchase agreement (SPA) with Mast Hill Fund, L.P. As per the agreement, Clean Energy Technologies sold a junior secured convertible promissory note worth $1,637,833.33 and warrants to purchase 818,917 shares of the company’s common stock to Mast Hill for a total price of $1,474,050.

The deal was finalized on the same day, with Mast Hill’s legal expenses of $22,000 covered by the gross purchase price. Additionally, $852,406.35 was paid to Mast Hill to settle a previous promissory note issued by Clean Energy Technologies in September 2024, resulting in the company receiving net funding of $308,051.20. The issued note and warrants were then transferred to Mast Hill.

The SPA outlines certain conditions, including restrictions on the use of proceeds from the transaction. The funds are designated for specific purposes such as repayment of previous obligations, working capital, and business development. Notably, the funds cannot be used for repaying debts to company insiders, financing external ventures, or extending loans to officers, directors, employees, or affiliates.

Under the terms of the agreement, Clean Energy Technologies is required to convene a special shareholder meeting within 60 days of its stock trading below $0.50 per share to seek approval for issuing additional company shares to Mast Hill. Moreover, the total number of shares that can be issued to Mast Hill is capped at 9,156,726 until shareholder approval is obtained.

The promissory note matures one year from the date of issue and carries a 10% annual interest rate, secured by the company’s assets. It can be converted into common stock at the holder’s discretion at a conversion price based on market conditions. The warrants, with a validity period of five years, allow for cashless exercises at an exercise price of $2.50 per share.

The Securities Purchase Agreement, Note, and Warrants mentioned in the filing are essential documents governing the transaction between Clean Energy Technologies and Mast Hill. These can be viewed in full in Exhibits 10.1-10.3 of the Form 8-K filing submitted to the Securities and Exchange Commission.

The company also disclosed creating a direct financial obligation or an off-balance sheet arrangement, and the issuance of the Note and Warrants was carried out in compliance with the exemption from registration under Section 4(a)(2) of the Securities Act of 1933.

This article summarizes the contents of Clean Energy Technologies’ recent SEC filing and the key aspects of the financial arrangement entered into with Mast Hill Fund, L.P.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Clean Energy Technologies’s 8K filing here.

About Clean Energy Technologies

Clean Energy Technologies, Inc designs, produces, and markets clean energy products and integrated solutions that focuses on energy efficiency and renewable energy in the United States. It operates through four segments: Clean Energy HRS and CETY Europe, CETY Renewables Waste to Energy Solutions, engineering and Manufacturing Business, and CETY HK.