GBT Technologies Inc. announced that it has entered into a securities purchase agreement with 1800 Diagonal Lending LLC for a private placement of a convertible promissory note for proceeds of $52,150 and a non-convertible promissory note for proceeds of $53,150 for total proceeds of $105,300 on March 1, 2023. The convertible note was issued at a discount rate of $10,530 and has a maturity date of June 1, 2024 and the Company has agreed to pay interest on the unpaid principal balance of the convertible note at the rate of 6.0% per annum from the date on which the convertible note is issued until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. The Company shall have the right to prepay the convertible note, provided it makes a payment including a prepayment to investor as set forth in the convertible note.
The non-convertible promissory note was issued at a discount of $6,258 and has a maturity date of June 1, 2024 and the Company has agreed to pay interest on the unpaid principal balance of the non-convertible promissory note at the rate of 12.0% per annum from the date on which the non-convertible promissory note is issued. A one-time interest charge of 12% or $7,128 was applied on the issuance date of the non-convertible promissory note to the principal amount owed under the non-convertible promissory note. Accrued, unpaid interest and outstanding principal, subject to adjustment, shall be paid in ten payments each in the amount of $6,653.60 resulting in a total payback to the investor of $66,536. The first payment is due April 15, 2023 with nine subsequent payments each month thereafter. The Company shall have a five-day grace period with respect to each payment. The Company has right to accelerate payments or prepay in full at any time with no prepayment penalty. This non-convertible promissory note shall not be secured by any collateral or any assets of the Company.