The immediate cash infusion provides short-term liquidity, but the onerous terms suggest financial distress. The $8 million B Note being held in escrow represents a significant restriction on capital. Investors should monitor whether the second closing occurs by April 24, 2026, as failure to close would indicate potential financial instability. The extensive investor protections and redemption rights suggest this is a high-risk financing arrangement.
Price Chart
Executive Summary
Smart Powerr Corp. (CREG) entered into a note purchase agreement with Streeterville Capital, LLC, issuing a $1.05 million A-1 Note that closed on April 10, 2026. The agreement also includes potential future closings for an additional $1.05 million A-2 Note and an $8 million secured B Note, contingent on conditions. The notes carry an 8% interest rate, original issue discount, and significant investor protections including redemption rights and default penalties.
Key Financial Metrics
Key Facts
- CREG issued a $1.05 million A-1 Note to Streeterville Capital, receiving $1 million in cash after $50,000 original issue discount
- The agreement includes potential future closings for a $1.05 million A-2 Note and an $8 million secured B Note, contingent on conditions
- Investor has substantial rights including monthly redemptions up to $200,000, default penalties that can increase outstanding balance by up to 25%, and strict covenants on the company
- The B Note requires $8 million to be held in a deposit account controlled by the investor, secured by a pledge of CREG Holdings, LLC membership interests
- Second closing must occur by April 24, 2026, or investor has no obligation to proceed
Financial Impact
Immediate $1 million cash infusion from A-1 Note; potential $9 million total from all notes if second closing occurs. B Note requires $8 million in cash collateral to be held in escrow.
Risk Factors
- Failure to meet second closing conditions by April 24, 2026
- Stringent covenants that restrict future financing options
- Investor's substantial redemption rights could create liquidity pressure
- Potential for default penalties to significantly increase debt burden
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-044619 |
| Document: ea028662701ex4-1.htm | 0001213900-26-044619 |
| Document: ea0286627-8k_smart.htm | 0001213900-26-044619 |
| Document: 0001213900-26-044619-index-headers.html | 0001213900-26-044619 |
| Document: 0001213900-26-044619-index.html | 0001213900-26-044619 |
| Document: 0001213900-26-044619.txt | 0001213900-26-044619 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 19d ago | 25-NSE | $0.7721 | awaiting T+60 | — | $0.004300 (+99.44%) |
Jul 20, 2026 14w ago | 8-K | $0.7721 | awaiting T+60 | — | $0.004300 (+99.44%) |
Jun 23, 2026 18w ago | 8-K | $2.30 $0.7721 | ▼ −66.43% | ▼ −69.27% | $0.004300 (−99.81%) |
May 22, 2026 22w ago | 8-K | $3.90 $0.1800 | ▲ +95.38% | ▲ +98.57% | $0.004300 (+99.89%) |
May 20, 2026 22w ago | 424B5 | $4.08 $0.1801 | ▲ +95.58% | ▲ +100.59% | $0.004300 (+99.89%) |
May 19, 2026 23w ago | Press Release | $4.60 $0.1800 | ▲ +96.09% | ▲ +102.38% | $0.004300 (+99.91%) |
Apr 16, 2026 27w ago | 8-K | $6.70 $1.53 | ▲ +77.16% | ▲ +83.31% | $0.004300 (+99.94%) |
US Market Status
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