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

TL;DR

Comstock Inc. (LODE) filed an 8-K detailing new agreements, financial obligations, and equity sales.

AI Summary

On September 19, 2024, Comstock Inc. filed an 8-K report detailing several significant events. These include entering into a material definitive agreement, creating a direct financial obligation, and unregistered sales of equity securities. The company, formerly known as Comstock Mining Inc., is incorporated in Nevada and operates in the industrial organic chemicals sector.

Why It Matters

This filing indicates potential new financial commitments and equity transactions for Comstock Inc., which could impact its financial structure and shareholder equity.

Risk Assessment

Risk Level: medium — The filing mentions material definitive agreements, direct financial obligations, and unregistered sales of equity securities, which can introduce financial and operational risks.

Key Players & Entities

• Comstock Inc. (company) — Registrant
• Comstock Mining Inc. (company) — Former company name
• GOLDSPRING INC (company) — Former company name
• GOLDSPRING (company) — Former company name
• September 19, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.000666 — ch registered Common Stock , par value $0.000666 per share LODE NYSE American Indica
• $5,319,149 — up to an aggregate principal amount of $5,319,149 (the "Principal Amount"), with an 6% or
• $3,500,000 — nvestor will fund an initial tranche of $3,500,000, which shall result in an aggregate pri
• $3,723,404 — ult in an aggregate principal amount of $3,723,404 (that is, $3,500,000 in cash plus origi
• $223,404 — in cash plus original issue discount of $223,404). On October 30, 2024, the Company may
• $1,500,000 — ect to request an additional funding of $1,500,000, which shall result in a principal amou
• $95,795 — 5,795 (that is, $1,500,000 in cash plus $95,795 of original issue discount). The Conver

Filing Documents

• lode20240917_8k.htm (8-K) — 30KB
• ex_725606.htm (EX-10.1) — 185KB
• ex_725607.htm (EX-10.2) — 104KB
• ex_725570.htm (EX-99.1) — 18KB
• logo.jpg (GRAPHIC) — 3KB
• 0001437749-24-029516.txt ( ) — 550KB
• lode-20240919.xsd (EX-101.SCH) — 3KB
• lode-20240919_def.xml (EX-101.DEF) — 11KB
• lode-20240919_lab.xml (EX-101.LAB) — 15KB
• lode-20240919_pre.xml (EX-101.PRE) — 11KB
• lode20240917_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On September 19, 2024, Comstock Inc. (the "Company") entered into a securities purchase agreement (the "Securities Purchase Agreement") with an investor (the "Investor"), relating to the issuance of an 6.0% Convertible Promissory Note due January 19, 2026 (the "Convertible Note"). Under the Convertible Note, the Company may issue up to an aggregate principal amount of $5,319,149 (the "Principal Amount"), with an 6% original issue discount. On the initial closing date, the Investor will fund an initial tranche of $3,500,000, which shall result in an aggregate principal amount of $3,723,404 (that is, $3,500,000 in cash plus original issue discount of $223,404). On October 30, 2024, the Company may elect to request an additional funding of $1,500,000, which shall result in a principal amount for such second tranche of 1,595,795 (that is, $1,500,000 in cash plus $95,795 of original issue discount). The Convertible Note accrues interest at a per annum interest rate of 6% and can be prepaid by providing 30-day notice. Such prepayment shall be made at 120% of the Principal Amount, plus accrued interest. The Convertible Note will be convertible into common stock of the Company at: (i) 200% of the Closing Price on the Disbursement Date, as defined in the Convertible Note, for the first consecutive 20 calendar days after the Disbursement Date, and (ii) thereafter, 88% of the lowest VWAP (80% during an event of default) of the 6 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 applicable closing of the Convertible Note, the Company will issue to the Investor (i), restricted shares of the Company's common stock equal to 2% of the Principal Amount of the Convertible Note, based on a price per share equal to the 20-d

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: September 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