This is a distressed financing at a micro-cap company with no apparent revenue-generating operations. The 15% conversion discount and default-triggered conversion rights give Coventry strong incentives to force a conversion event, especially if CETY misses any of the ten monthly payments starting August 7. Monitor the first payment closely—a missed payment constitutes an immediate event of default, converting the note at a steep discount and accelerating dilution. The cross-default clause with other Coventry debt amplifies risk. The board additions 8 days prior suggest pre-arranged governance changes to facilitate this structure.
Price Chart
Executive Summary
Clean Energy Technologies issued a $166,500 convertible promissory note to Coventry Enterprises LLC, netting $141,000 in working capital after fees and original issue discount. The note carries a 12% one-time interest charge, requires ten monthly payments of $18,648 starting August 7, 2026, and is convertible into common stock at a 15% discount to the lowest closing bid price over the prior ten trading days upon an event of default. This financing signals acute cash constraints at a sub-$11M market cap company with 12.2M shares outstanding.
Key Financial Metrics
Key Facts
- Convertible promissory note principal of $166,500, purchase price of $150,000 (reflecting $16,500 original issue discount)
- Net proceeds to CETY: $141,000 after $3,000 legal fees and $6,000 broker fee
- Ten monthly payments of $18,648 beginning August 7, 2026; maturity May 1, 2027
- Conversion price: 85% of the lowest closing bid price over the 10 trading days prior to conversion date (15% discount)
- Conversion only permitted after an event of default; holder ownership capped at 4.99%
- Required share reserve of 1,391,428 shares (four times initial fully-converted amount)
- 12.2M shares outstanding pre-financing; potential dilution of ~11.4% from the full reserve amount
- Cross-default provision ties this note to any other debt held by Coventry
- Board appointments (Ruoxin Wang, Zhang Zhixiang) on June 21, 2026, 8 days prior to this financing
Financial Impact
$141,000 net working capital infusion; potential 11.4% dilution if fully converted at initial reserve level; $186,480 total payback including principal and interest
Risk Factors
- High probability of event of default given micro-cap cash constraints; monthly payment of $18,648 against $141K net proceeds leaves limited runway
- Convertible at 85% of the lowest 10-day bid price—severe dilution risk if stock price declines
- Cross-default clause with other Coventry debt could trigger cascading defaults
- Nasdaq continued listing risk: company must maintain compliance, but financing structure suggests existential cash pressures
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-032551 |
| Exhibit: ex10-1.htm | 0001493152-26-032551 |
| Document: form8-k.htm | 0001493152-26-032551 |
| Document: 0001493152-26-032551-index-headers.html | 0001493152-26-032551 |
| Document: 0001493152-26-032551-index.html | 0001493152-26-032551 |
| Document: 0001493152-26-032551.txt | 0001493152-26-032551 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | 8-K | $0.9650 $0.8900 | ▲ +7.77% | ▲ +6.59% | $0.8250 (+14.51%) |
Aug 14, 2026 10w ago | 8-K | $0.9325 $0.9200 | ▲ +1.34% | ▲ +0.87% | $0.8250 (+11.53%) |
Jul 31, 2026 12w ago | 8-K | $0.9500 $0.9100 | ▲ +4.21% | ▲ +6.01% | $0.8250 (+13.16%) |
Jul 8, 2026 15w ago | 8-K | $0.8400 $0.8520 | ▼ −1.43% | ▼ −1.00% | $0.8250 (+1.79%) |
Jun 30, 2026 16w ago | 8-K | $0.8700 $0.8647 | ▼ −0.61% | ▼ −0.48% | $0.8250 (−5.17%) |
Jun 8, 2026 20w ago | 8-K | $0.7700 $0.8100 | ▼ −5.19% | ▼ −5.49% | $0.8250 (−7.14%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8250 (−8.57%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8250 (−8.57%) |
Jun 5, 2026 20w ago | 10-Q/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8250 (−8.57%) |
Jun 5, 2026 20w ago | 10-K/A | $0.7599 $0.7700 | ▼ −1.33% | ▼ −1.10% | $0.8250 (−8.57%) |
US Market Status
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