Tantech Pays Forbearance Fee to Streeterville on $2.16M Note

TL;DR

**Tantech paid a 10% fee to delay repaying a $2.16 million convertible note, signaling potential cash flow problems.**

AI Summary

Tantech Holdings Ltd. (TANH) has entered into a Forbearance Agreement with Streeterville Capital, LLC on January 12, 2024. This agreement temporarily halts Streeterville's right to redeem a $2.16 million convertible promissory note issued on June 29, 2023, which Streeterville had attempted to redeem on December 29, 2023. In exchange for this forbearance, Tantech agreed to pay Streeterville a fee equal to 10% of the note's outstanding balance. This matters to investors because it indicates Tantech is facing challenges in repaying its debt, potentially signaling financial strain and a need to buy more time.

Why It Matters

This filing reveals Tantech is struggling to meet its debt obligations, as evidenced by Streeterville's redemption notice and Tantech's need to pay a fee to delay repayment. This could signal liquidity issues and increased financial risk for the company.

Risk Assessment

Risk Level: high — The company's inability to redeem a note and subsequent payment of a forbearance fee suggests significant financial distress and potential liquidity issues.

Analyst Insight

A smart investor would view this as a red flag regarding Tantech's financial health and consider the increased risk of holding or buying the stock, potentially leading to further due diligence or a re-evaluation of their position.

Key Numbers

• $2.16M — Original Principal Amount of Note (The initial debt Tantech owed to Streeterville Capital.)
• 10% — Forbearance Fee Percentage (The additional cost Tantech agreed to pay to delay repayment of the note.)

Key Players & Entities

• TANTECH HOLDINGS LTD (company) — the registrant and issuer of the convertible promissory note
• Streeterville Capital, LLC (company) — the holder of the convertible promissory note and recipient of the forbearance fee
• $2.16 million (dollar_amount) — original principal amount of the convertible promissory note
• June 29, 2023 (date) — date the convertible promissory note was issued
• December 29, 2023 (date) — date Streeterville delivered the Redemption Notice
• January 12, 2024 (date) — date the Forbearance Agreement was entered into
• 10% (dollar_amount) — forbearance fee percentage of the outstanding balance of the Note

Forward-Looking Statements

• Tantech Holdings LTD will likely face continued financial pressure and may need to seek further debt restructuring or financing. (TANTECH HOLDINGS LTD) — medium confidence, target: Q1 2024
• The forbearance fee will negatively impact Tantech's short-term financial results. (TANTECH HOLDINGS LTD) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $2.16 million — 023 in the original principal amount of $2.16 million (the "Note") pursuant to a securities p
• $1,982,717.21 — ing outstanding balance on the Note was $1,982,717.21. The parties agreed that the Note shall

Filing Documents

• tanh_6k.htm (6-K) — 14KB
• tanh_ex991.htm (EX-99.1) — 36KB
• 0001477932-24-000197.txt ( ) — 51KB

From the Filing

tanh_6k.htm UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2024 Commission File Number: 001-36885 TANTECH HOLDINGS LTD (Translation of registrant's name into English) c/o Zhejiang Forest Bamboo Technology Co., Ltd. No. 10 Cen Shan Road, Shuige Industrial Zone Lishui City, Zhejiang Province 323000 +86-578-226-2305 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F Explanatory Note: As previously reported, on June 29, 2023, the Registrant issued to Streeterville Capital, LLC, a Utah limited liability ("Streeterville"), a convertible promissory note dated June 29, 2023 in the original principal amount of $2.16 million (the "Note") pursuant to a securities purchase agreement dated June 29, 2023 between Streeterville and the Registrant (the "Purchase Agreement," and together with the Note and all other documents entered into in conjunction therewith, the "Transaction Documents"). Under the Note, Streeterville has the right to redeem the Note beginning forty-five days from the Purchase Price Date of the Note. On December 29, 2023, Streeterville delivered a Redemption Notice (the "December Redemption Notice") that has not been redeemed by the Registrant. On January 12, 2024, the Registrant and Streeterville entered into a Forbearance Agreement (the "Forbearance Agreement") under which Streeterville agreed to withdraw the December Redemption Notice and not to seek to enforce any remedies under the Note with respect to the December Redemption Notice. In exchange for the forbearance, the Registrant agreed to pay to Streeterville a forbearance fee equal to ten percent (10%) of the outstanding balance of the Note (the "Forbearance Fee"). Following the application of the Forbearance Fee, the total remaining outstanding balance on the Note was $1,982,717.21. The parties agreed that the Note shall remain in full force and effect and, except with respect to the December Redemption Notice, the Forbearance Agreement shall not operate as a waiver of or an amendment to Streeterville's rights or remedies under the Note or the Transaction Documents. The foregoing descriptions of the Forbearance Agreement are summaries of certain material terms of the agreement, do not purport to be complete and are qualified in their entirety by reference to the agreement, which is attached hereto as Exhibits 99.1. Exhibit Index Exhibit Number Description of Exhibit 99.1 Forbearance Agreement, dated January 12, 2024, by and between Streeterville Capital, LLC and Tantech Holdings Ltd. 2 SIGNATURE 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, thereunto duly authorized. Tantech Holdings Ltd Date: January 16, 2024 By: /s/ Wangfeng Yan Wangfeng Yan Chief Executive Officer 3

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View this 6-K filing on SEC EDGAR