EzFill Holdings (EZFL) has released an update to notify the public and investors about an entry into a material definitive agreement.
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EzFill Holdings, Inc. secured a $165,000 loan from Next Charging, LLC to meet its working capital needs, with an original issue discount of $15,000 and an initial interest rate of 8%, rising to 18% after nine months. The loan is due on March 25, 2024, but can be extended in two-month increments unless Next opts out. If the company raises at least $3 million or defaults, the full balance becomes immediately due. Additionally, Next can convert debt to common stock at the greater of the average VWAP over ten trading days or a floor price of $0.70, with adjustments for stock splits. Next, owned by Michael Farkas who holds 20% of EzFill’s common stock, will become a wholly-owned subsidiary of EzFill upon completion of a previously agreed exchange agreement.
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For a comprehensive understanding of the announcement, you can read the full document here.
