Comstock Inc. Files 8-K on Agreements and Equity Sales

TL;DR

Comstock Inc. dropped an 8-K detailing new debt, equity sales, and material agreements.

AI Summary

Comstock Inc. filed an 8-K on July 19, 2024, reporting on several key events. These include entering into a material definitive agreement, creating a direct financial obligation, and unregistered sales of equity securities. The filing also lists financial statements and exhibits.

Why It Matters

This filing indicates significant corporate actions by Comstock Inc., including new financial obligations and equity transactions, which could impact its financial structure and shareholder value.

Risk Assessment

Risk Level: medium — The filing mentions direct financial obligations and unregistered sales of equity, which can introduce financial risks and dilution concerns.

Key Players & Entities

• Comstock Inc. (company) — Registrant
• July 19, 2024 (date) — Date of earliest event reported
• Nevada (jurisdiction) — State of Incorporation

FAQ

Key Financial Figures

• $0.000666 — ch registered Common Stock , par value $0.000666 per share LODE NYSE American Indica
• $2,717,500 — original aggregate principal amount of $2,717,500 (the "Principal Amount") and an 8% orig
• $2,500,000 — e Investor for the Convertible Note was $2,500,000. A portion of the proceeds will redeem
• $500,000 — . A portion of the proceeds will redeem $500,000 of existing convertible indebtedness at

Filing Documents

• lode20240715_8k.htm (8-K) — 29KB
• ex_698457.htm (EX-10.1) — 189KB
• ex_698458.htm (EX-10.2) — 103KB
• ex_700074.htm (EX-99.1) — 16KB
• logo.jpg (GRAPHIC) — 3KB
• 0001437749-24-023037.txt ( ) — 551KB
• lode-20240719.xsd (EX-101.SCH) — 3KB
• lode-20240719_def.xml (EX-101.DEF) — 11KB
• lode-20240719_lab.xml (EX-101.LAB) — 15KB
• lode-20240719_pre.xml (EX-101.PRE) — 11KB
• lode20240715_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On July 19, 2024, Comstock Inc. (the "Company") has entered into a securities purchase agreement (the "Securities Purchase Agreement") with an investor (the "Investor"), relating to the issuance of an 8.0% Convertible Promissory Note due October 31, 2025 (the "Convertible Note"). The Convertible Note was issued with an original aggregate principal amount of $2,717,500 (the "Principal Amount") and an 8% original issue discount, meaning that the purchase price paid by the Investor for the Convertible Note was $2,500,000. A portion of the proceeds will redeem $500,000 of existing convertible indebtedness at 110%. The Convertible Note accrues interest at a per annum interest rate of 8% and is redeemable for 30-days following closing at 125% of the Principal Amount, plus accrued interest. The Convertible Note is convertible into common stock of the Company at a conversion price equal to the lower of (i) 150% of the Closing Price on the Closing Date and (ii) 80% of the lowest VWAP (70% during an event of default) of the 10 trading days prior to and including the date of the Conversion Notice. "VWAP" means, for or as of any date, the dollar volume-weighted average price for such security on the trading market as reported by www.quotemedia.com. On the eleventh day following the closing of the Convertible Note, the Company will issue (i) registered shares of its common stock equal to 3% of the Principal Amount of the Convertible Note, based on a price per share equal to the 20-day VWAP for the VWAP Period, and (ii) restricted shares of the Company's common stock equal in value to 2% of the Principal Amount of the Convertible Note, based on a price per share equal to the 20-day VWAP for the VWAP Period, in each case, for no additional consideration. The Securities Purchase Agreement included customary representations and covenants for the sale and purchase of securities. In addition, the Securities Purchase Agreement

02 Unregistered Sale of Equity Securities

Item 3.02 Unregistered Sale of Equity Securities. The information required to be disclosed in Item 1.01 is incorporated herein by reference to this Item 3.02.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits 10.1 Securities Purchase Agreement 10.2 Convertible Note 99.1 Press Release 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COMSTOCK INC. Date: July 19, 2024 By: /s/ Corrado De Gasperis Corrado De Gasperis Executive Chairman and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR