Watch for CETY's stock price trajectory over the next six months — the conversion price resets to 85% of the lowest trading price in the prior ten days, creating a self-reinforcing downward spiral if the stock declines. Monitor for shareholder approval filings (DEF 14A) and any subsequent conversions that would signal the start of dilution.
Price Chart
Executive Summary
Clean Energy Technologies issued a $500,000 convertible promissory note to Falcon Venture Limited, maturing October 18, 2027, with 8% interest and a conversion price at 85% of the lowest traded price in the prior ten trading days. The proceeds are earmarked for business development and payment of company obligations. This creates a new debt obligation and potential future dilution of up to 2,432,004 shares (the Exchange Cap) pending shareholder approval.
Key Financial Metrics
Key Facts
- Issued $500,000 convertible promissory note to Falcon Venture Limited on October 18, 2026.
- Note matures October 18, 2027, with 8% annual interest; default interest at 16%.
- Conversion price set at 85% of the lowest traded price during the ten trading days prior to conversion.
- Conversion allowed six months after issuance; holder limited to 9.99% beneficial ownership and an Exchange Cap of 2,432,004 shares unless shareholder approval is obtained.
- Proceeds used for business development and payment of company obligations.
- As of September 30, 2026, the company had 12,166,106 shares of common stock outstanding.
- The Note is unsecured and ranks as a direct financial obligation.
- The holder may deduct $1,750 per conversion for fees.
Financial Impact
New $500,000 debt with 8% interest; potential dilution of up to ~20% of current shares outstanding (2,432,004 shares vs. 12,166,106 outstanding) if fully converted at a discount to market.
Risk Factors
- Significant dilution risk: up to 2,432,004 new shares (20% of current float) could be issued at a 15% discount to market.
- Debt service burden: $40,000 annual interest on a company with likely limited cash flow.
- Potential for a death spiral: the floating conversion price incentivizes conversion when the stock is low, increasing dilution and further depressing the price.
- Shareholder approval required for issuances above the Exchange Cap — failure to obtain it could trigger an event of default.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-047803 |
| Exhibit: ex10-2.htm | 0001493152-26-047803 |
| Document: form8-k.htm | 0001493152-26-047803 |
| Document: 0001493152-26-047803-index-headers.html | 0001493152-26-047803 |
| Document: 0001493152-26-047803-index.html | 0001493152-26-047803 |
| Document: 0001493152-26-047803.txt | 0001493152-26-047803 |
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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