Comstock Inc. Enters Material Definitive Agreement
Ticker: LODE · Form: 8-K · Filed: Jan 13, 2025 · CIK: 1120970
| Field | Detail |
|---|---|
| Company | Comstock Inc. (LODE) |
| Form Type | 8-K |
| Filed Date | Jan 13, 2025 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $0.000666, $10,638,298, $5,000,000, $5,319,149, $319,149 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt, financing, material-agreement
TL;DR
Comstock Inc. just signed a big loan agreement, details to come.
AI Summary
On January 10, 2025, Comstock Inc. entered into a material definitive agreement, specifically a loan agreement with an unnamed lender. This agreement creates a direct financial obligation for Comstock Inc., the details of which are not fully disclosed in this filing but are expected to be significant.
Why It Matters
This filing indicates Comstock Inc. has taken on a new financial obligation, which could impact its financial structure and future operations.
Risk Assessment
Risk Level: medium — Entering into new financial obligations can introduce financial risk if not managed properly.
Key Players & Entities
- Comstock Inc. (company) — Registrant
- January 10, 2025 (date) — Date of earliest event reported
- Nevada (jurisdiction) — State of Incorporation
FAQ
What is the specific nature and amount of the material definitive agreement entered into by Comstock Inc.?
The filing states that Comstock Inc. entered into a material definitive agreement on January 10, 2025, which creates a direct financial obligation. However, the specific details of the agreement, including the amount and nature of the obligation, are not provided in this initial 8-K filing.
Who is the lender in the material definitive agreement?
The filing does not disclose the identity of the lender in the material definitive agreement.
What is the purpose of the financial obligation created by the agreement?
The purpose of the financial obligation is not specified in this 8-K filing.
When was the material definitive agreement entered into?
The material definitive agreement was entered into on January 10, 2025.
What are the implications of this new financial obligation for Comstock Inc.'s financial health?
The filing indicates a new financial obligation has been created, but the specific implications for Comstock Inc.'s financial health are not detailed and would require further information about the terms of the agreement.
Filing Stats: 1,253 words · 5 min read · ~4 pages · Grade level 14 · Accepted 2025-01-13 06:03:46
Key Financial Figures
- $0.000666 — ch registered Common Stock , par value $0.000666 per share LODE NYSE AMERICAN Indica
- $10,638,298 — sue up an aggregate principal amount of $10,638,298 (the "Principal Amount"), with an 6% or
- $5,000,000 — al closing date, the Investor will fund $5,000,000, which shall result in an aggregate pri
- $5,319,149 — ult in an aggregate principal amount of $5,319,149 (that is, $5,000,000 in cash plus origi
- $319,149 — in cash plus original issue discount of $319,149). On or before the date that is ten (10
Filing Documents
- lode20250108_8k.htm (8-K) — 29KB
- ex_764363.htm (EX-10.1) — 197KB
- ex_764364.htm (EX-10.2) — 113KB
- 0001437749-25-000902.txt ( ) — 544KB
- lode-20250110.xsd (EX-101.SCH) — 3KB
- lode-20250110_def.xml (EX-101.DEF) — 11KB
- lode-20250110_lab.xml (EX-101.LAB) — 15KB
- lode-20250110_pre.xml (EX-101.PRE) — 11KB
- lode20250108_8k_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On January 10, 2025, Comstock Inc. (the "Company") entered into a securities purchase agreement (the "Securities Purchase Agreement") with an investor (the "Investor"), relating to the issuance of a 6.0% Convertible Promissory Note due April 10, 2026 (the "Convertible Note"). Under the Convertible Note, the Company may issue up an aggregate principal amount of $10,638,298 (the "Principal Amount"), with an 6% original issue discount. On the initial closing date, the Investor will fund $5,000,000, which shall result in an aggregate principal amount of $5,319,149 (that is, $5,000,000 in cash plus original issue discount of $319,149). On or before the date that is ten (10) business days after the Company effects a reverse split (the "Stock Split") resulting in an effective increase in the number of authorized shares of the Company's common shares (the "Common Stock") available for future issuances of Common Stock, the Company will receive an additional funding of $5,000,000, which shall result in a principal amount for such second tranche of $5,319,149 (that is, an additional $5,000,000 in cash plus an additional $319,149 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. Except as set forth in the Convertible Note, conversion of the Convertible Note shall be subject to the Stock Split. The Convertible Note will be convertible into common stock of the Company at a conversion price equal to 88% of the lowest VWAP (or 80% of the lowest VWAP, if an Event of Default (as defined in the Convertible Note) has occurred and is continuing) of the 6 consecutive 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 ma
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. d) Exhibits . 10.1 Securities Purchase Agreement 10.2 Convertible Note 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: January 13, 2025 By: /s/ Corrado De Gasperis Corrado De Gasperis Executive Chairman and Chief Executive Officer