The convertible note is toxic—expect heavy selling pressure as Pacific Pier converts at a discount and sells shares. Monitor for shareholder approval filings (Schedule 14C) and any conversions near the 6-month lockup expiry. The stock may face sustained downward pressure from the overhang.
Price Chart
Executive Summary
CETY entered into a $406,000 convertible promissory note with Pacific Pier Capital II, receiving net proceeds of ~$350,280 after OID and fees. The note carries 12% interest, converts at 85% of the lowest VWAP over 10 days (after 6 months), and includes a 125% prepayment penalty. The structure is highly dilutive to existing shareholders, with an exchange cap of 2M shares (16% of outstanding) before shareholder approval.
Key Financial Metrics
Key Facts
- Principal amount $406,000, purchased at $357,280 (12% OID), net proceeds ~$350,280.
- Matures 12 months from April 20, 2026, interest 12% per annum.
- Conversion after 6 months at 85% of lowest VWAP over prior 10 trading days.
- Exchange cap of 2,000,000 shares (16% of 12.2M shares outstanding) until shareholder approval.
- Prepayment allowed at 125% of principal plus accrued interest plus $750 fee.
- Piggyback registration rights granted to investor.
Financial Impact
Net proceeds of $350,280 equate to ~3.5% of market cap ($10M), but potential dilution from conversion could be significant due to discount pricing.
Risk Factors
- Severe dilution from low conversion price relative to market.
- Potential default if market cap falls below $5M (Event of Default).
- Shareholder approval risk—if denied, conversion limited to 2M shares but still material.
- Accelerated prepayment penalty (125%) if company tries to refinance.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-019371 |
| Exhibit: ex10-2.htm | 0001493152-26-019371 |
| Document: form8-k.htm | 0001493152-26-019371 |
| Document: 0001493152-26-019371-index-headers.html | 0001493152-26-019371 |
| Document: 0001493152-26-019371-index.html | 0001493152-26-019371 |
| Document: 0001493152-26-019371.txt | 0001493152-26-019371 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | 8-K | $0.9650 $0.8900 | ▲ +7.77% | ▲ +6.59% | $0.8900 (+7.77%) |
Aug 14, 2026 10w ago | 8-K | $0.9325 $0.9200 | ▲ +1.34% | ▲ +0.87% | $0.8900 (+4.56%) |
Jul 31, 2026 12w ago | 8-K | $0.9500 $0.9100 | ▲ +4.21% | ▲ +6.01% | $0.8900 (+6.32%) |
Jul 8, 2026 15w ago | 8-K | $0.8400 $0.8520 | ▼ −1.43% | ▼ −1.00% | $0.8900 (−5.95%) |
Jun 30, 2026 17w ago | 8-K | $0.8700 $0.8647 | ▼ −0.61% | ▼ −0.48% | $0.8900 (+2.30%) |
Jun 8, 2026 20w ago | 8-K | $0.7700 $0.8100 | ▼ −5.19% | ▼ −5.49% | $0.8900 (−15.58%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8900 (−17.12%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8900 (−17.12%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8900 (−17.12%) |
Jun 5, 2026 20w ago | 10-K/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8900 (−17.12%) |
US Market Status
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