Antelope Holdings Secures $4.63M Promissory Note at 16% Interest
Ticker: AEHL · Form: 6-K · Filed: Jan 29, 2024 · CIK: 1470683
Complexity: simple
Sentiment: bearish
Topics: debt-financing, promissory-note, interest-expense, corporate-finance
TL;DR
**Antelope just borrowed $4.63M at a steep 16% interest, adding debt but getting cash now.**
AI Summary
Antelope Enterprise Holdings Ltd. secured a $4,630,000 promissory note on January 25, 2024, from an existing shareholder, carrying a 16% annual interest rate. This debt financing aims to provide capital for the company, but it comes with a cost: Antelope will pay Global Pacific Securities US Inc. a 3% cash fee ($138,900) plus up to $30,000 in expenses for advising on the transaction. This matters to investors because while it provides immediate capital, the high interest rate and advisory fees will impact future profitability and increase the company's debt burden.
Why It Matters
This filing indicates Antelope Enterprise Holdings Ltd. is taking on significant debt at a high interest rate, which could strain future earnings but provides immediate capital for operations or growth.
Risk Assessment
Risk Level: medium — The 16% interest rate on the $4.63 million promissory note is quite high, indicating potential financial strain or limited access to cheaper capital, increasing the company's debt servicing costs.
Analyst Insight
An investor should carefully evaluate Antelope Enterprise Holdings Ltd.'s ability to service this high-interest debt and its plans for utilizing the capital, as the 16% interest rate will significantly impact future earnings.
Key Numbers
- $4.63M — Promissory Note Principal (The amount of new debt Antelope Enterprise Holdings Ltd. is taking on.)
- 16% — Annual Interest Rate (The high cost of borrowing for Antelope Enterprise Holdings Ltd., impacting future profitability.)
- 3% — Advisor Fee Percentage (The percentage of gross proceeds paid to Global Pacific Securities US Inc. as a cash fee.)
- $138,900 — Advisor Cash Fee (The calculated cash fee paid to Global Pacific Securities US Inc. (3% of $4,630,000).)
- $30,000 — Advisor Expense Reimbursement Cap (The maximum amount Antelope Enterprise Holdings Ltd. will reimburse Global Pacific Securities US Inc. for expenses.)
Key Players & Entities
- Antelope Enterprise Holdings Ltd. (company) — registrant and borrower
- Global Pacific Securities US Inc. (company) — lead advisor for the transaction
- Investor (person) — existing shareholder and lender
- $4,630,000 (dollar_amount) — principal amount of the promissory note
- 16% (dollar_amount) — annual interest rate on the note
- 3% (dollar_amount) — cash fee percentage paid to Global Pacific
- $30,000 (dollar_amount) — maximum accountable expenses reimbursed to Global Pacific
- January 25, 2024 (date) — date the note purchase agreement was entered into
Forward-Looking Statements
- Antelope Enterprise Holdings Ltd.'s interest expenses will significantly increase in the next fiscal year due to this high-interest debt. (Antelope Enterprise Holdings Ltd.) — high confidence, target: December 31, 2024
- The company may seek to refinance this debt at a lower interest rate if its financial health improves or market conditions become more favorable. (Antelope Enterprise Holdings Ltd.) — medium confidence, target: January 25, 2025
FAQ
What is the principal amount of the promissory note Antelope Enterprise Holdings Ltd. entered into?
Antelope Enterprise Holdings Ltd. entered into a promissory note with a principal amount of $4,630,000, as stated in the Note Purchase Agreement on January 25, 2024.
What is the annual interest rate on the promissory note?
The promissory note carries an interest rate of 16% per annum, as detailed in the Purchase Agreement.
Who is the Investor providing the promissory note to Antelope Enterprise Holdings Ltd.?
The Investor is an existing shareholder of Antelope Enterprise Holdings Ltd., as specified in the filing.
What fees and expenses will Antelope Enterprise Holdings Ltd. pay to Global Pacific Securities US Inc. for this transaction?
Antelope Enterprise Holdings Ltd. agreed to pay Global Pacific Securities US Inc. a cash fee equal to three percent (3%) of the gross proceeds (which is $138,900 based on the $4,630,000 principal) and to reimburse Global Pacific for its accountable expenses up to $30,000.
When was the Note Purchase Agreement entered into?
The Note Purchase Agreement was entered into on January 25, 2024, according to the filing.
Filing Stats: 904 words · 4 min read · ~3 pages · Grade level 15.7 · Accepted 2024-01-29 17:20:15
Key Financial Figures
- $4,630,000 — ote ”) with a principal amount of $4,630,000 and an interest rate of 16% per annum.
- $30,000 — ific for its accountable expenses up to $30,000. A copy of the Purchase Agreement is
Filing Documents
- form6-k.htm (6-K) — 29KB
- ex4-1.htm (EX-4.1) — 42KB
- ex10-1.htm (EX-10.1) — 81KB
- ex10-2.htm (EX-10.2) — 131KB
- 0001493152-24-004187.txt ( ) — 285KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. ANTELOPE ENTERPRISE HOLDINGS LTD. By: /s/ Hen Man Edmund Hen Man Edmund Chief Financial Officer Date: January 29, 2024