Summary by Moomoo AI
On December 4, 2024, Volato Group entered a Securities Purchase Agreement with an institutional investor to issue up to $36M in senior unsecured convertible promissory notes. The initial tranche of $4.5M was issued at a 10% discount, maturing on December 4, 2025. The notes are convertible into Class A common stock at an initial conversion price of $0.3660 per share, subject to adjustments.The agreement includes conditions for issuing additional notes, such as effective registration statements and compliance with previous agreements. The company is required to hold a shareholder meeting within 75 days to approve the issuance of shares under the notes. The agreement limits the issuance of shares to 19.99% of outstanding shares unless shareholder approval is obtained.Volato Group will file a registration statement with the SEC to register the resale of shares issuable under the notes. The company aims to have the registration effective within 60 days of closing. The notes include customary default events, with interest rates increasing to 18% upon default.
