Comstock (NYSE:LODE) Enters into Securities Purchase Agreement – $10,638,298 Convertible Note Deal with Investor

Comstock Inc., a Nevada-based company listed on NYSE American under the ticker symbol LODE, has recently finalized a significant financial agreement. On January 10, 2025, Comstock entered into a Securities Purchase Agreement with an investor for the issuance of a 6.0% Convertible Promissory Note due April 10, 2026.

According to the terms of the agreement, Comstock may issue up to an aggregate principal amount of $10,638,298 with a 6% original issue discount. The initial closing will see the investor funding $5,000,000, resulting in an aggregate principal amount of $5,319,149. A further $5,000,000 will be funded following a reverse split, maintaining the same principal amount for the second tranche.

The Convertible Note accrues interest at a rate of 6% per annum and can be prepaid with a 30-day notice at 120% of the Principal Amount plus accrued interest. The conversion of the Convertible Note is contingent upon the completion of the Stock Split.

Additionally, the agreement outlines that the Convertible Note will be convertible into common stock of Comstock at a conversion price based on the lowest VWAP over a specific trading period. The investor is also entitled to receive restricted and registered shares of the Company’s common stock based on the Principal Amount of the Convertible Note.

In line with the agreement, Comstock has committed to convening a special meeting of shareholders by February 28, 2025, to seek approval for effectively increasing its authorized shares. There are covenants in place, preventing the investor from short positions and Comstock from engaging in certain transactions while the Convertible Note is outstanding.

The detailed terms and conditions of the Securities Purchase Agreement and the Convertible Note have been incorporated by reference, which can be found in Exhibit 10.1 and Exhibit 10.2, respectively.

This move by Comstock signifies a strategic step towards securing capital investment while outlining clear measures for its utilization and implications for all involved parties. Investors and analysts may want to closely monitor the subsequent impacts of this financial agreement on Comstock’s operations and market performance.

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

About Comstock

Comstock Inc engages in the systemic decarbonization business in Nevada and internationally. It operates through Renewable Energy, Mining, and Strategic and Other Investments segments. It will develop technology for the deploying of extraction and refining facilities that convert wasted and unused biomass and other natural resources; and a demonstration system to extract black mass containing lithium, graphite, nickel, cobalt, manganese, copper, aluminum, and other metals from up to lithium-ion batteries.