The Coretec Group (OTCMKTS:CRTG) Enters into Subscription Agreement in Recent 8-K Filing

The Coretec Group Inc. recently disclosed in an 8-K filing that on December 1, 2024, the company entered into a Subscription Agreement with an accredited investor. This agreement entails the issuance and sale of an aggregate of 10,700 shares of the Company’s designated Series D Convertible Preferred Shares to the investor in a private placement. Each Series D Preferred Share, with a stated value of $100 per share, is convertible into shares of common stock (Conversion Shares) at a fixed conversion price of $0.015 per Conversion Share. The Purchaser acquired 10,700 Series D Preferred Shares initially convertible into 71,333,333 Conversion Shares for a total purchase price of $1,070,000.

As per the agreement, the Purchaser is restricted from converting any portion of its Series D Preferred Shares if it would, together with its affiliates, beneficially own more than 4.99% of the outstanding shares of Common Stock post-conversion. Furthermore, holders of Series D Preferred Shares have an option to exchange their shares for shares of a third-party company in the event of the Company completing an acquisition of shares in the said third-party company. The exchange rate for such transactions would follow the terms outlined in the certificate of designations for the Series D Preferred Shares.

The Agreement features customary representations, warranties, and agreements from both the Company and the Purchaser, along with indemnification rights and obligations. The Company can conduct multiple closings for the sale of the Series D Preferred Stock. The offering of Series D Preferred Shares is scheduled to be open until March 31, 2025, with a potential extension period of up to 45 days at the Company’s discretion.

Additionally, as part of the filing, the Company provided forward-looking statements, highlighting the inherent risks and uncertainties associated with future events and financial performance. The Company reiterated that the forward-looking statements are based on current expectations and are subject to various factors that could cause actual results to differ materially. The Company also mentioned that it will not update these statements unless required by law.

The filing also incorporated details concerning unregistered sales of equity securities and a Regulation FD Disclosure. On December 5, 2024, the Company issued a press release outlining the intended use of proceeds from the offering.

This news follows Coretec Group’s recent acquisition of a controlling stake in KIB Plug Energy Co., Ltd., reflecting a strategic move towards global leadership in energy innovation. The transformative acquisition, alongside restructuring initiatives within the company, underlines Coretec’s emergence as a prominent player in the energy and technology sectors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read The Coretec Group’s 8K filing here.

About The Coretec Group

The Coretec Group Inc engages in the development of silicon anode active materials for lithium-ion batteries and cyclohexasilane for electric vehicles, cleantech, and tech applications. The company was founded in 2002 and is headquartered in Ann Arbor, Michigan.