Connexa Sports Enters Material Definitive Agreement

TL;DR

**Connexa Sports just signed a major agreement, signaling a big move for the company!**

AI Summary

Connexa Sports Technologies Inc. entered into a Material Definitive Agreement on February 21, 2024. The filing, an 8-K, indicates a significant event for the company, which is incorporated in Delaware and has its business address at 2709 N. Rolling Road, Suite 138, Windsor Mill, MD 21244. The specific details of the agreement are not provided in this excerpt, but it signals a potentially impactful corporate action.

Why It Matters

This filing signals a potentially significant strategic or financial move by Connexa Sports Technologies Inc., which could impact its operations, financial health, or future direction.

Risk Assessment

Risk Level: medium — The filing indicates a material agreement but lacks specific details, making it difficult to assess the exact nature and potential risks or benefits.

Key Players & Entities

• Connexa Sports Technologies Inc. (company) — Registrant
• Delaware (company) — State of incorporation
• February 21, 2024 (date) — Date of earliest event reported
• 2709 N. Rolling Road, Suite 138, Windsor Mill, MD 21244 (company) — Principal executive offices address
• Slinger Bag Inc. (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value CNXA Nasdaq Capital Mark
• $2,000,000 — an aggregate principal amount of up to $2,000,000 (the "Note"). As previously disclosed
• $1,000,000 — ment to allow for an additional loan of $1,000,000 pursuant to the loan and security modif
• $1.90 — "Common Stock") at an exercise price of $1.90 per share. These warrants to purchase 1
• $0.294 — on Stock at a reduced exercise price of $0.294 per share in consideration of the Compa
• $3,197,335.65 — al amount owed pursuant to the Note was $3,197,335.65. Of this amount, the Company received g
• $3 million — the Company received gross proceeds of $3 million from the Lenders. On February 21, 202
• $0.32 — ed on the agreed to conversion price of $0.32. The Company believes that the $0.32 co
• $0.16 — the exercise price of such warrants to $0.16 per share. The Lender's Warrants cannot
• $6 million — ent the difference, if any, between (i) $6 million (the "Guaranteed Amount") and (ii) the
• $2 million — bligated to fund an escrow account with $2 million within ten (10) weeks of February 21, 2

Filing Documents

• form8-k.htm (8-K) — 47KB
• ex10-1.htm (EX-10.1) — 122KB
• 0001493152-24-007413.txt ( ) — 367KB
• cnxa-20240221.xsd (EX-101.SCH) — 3KB
• cnxa-20240221_lab.xml (EX-101.LAB) — 33KB
• cnxa-20240221_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 4KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 February 21, 2024 Date of Report (Date of earliest event reported) CONNEXA SPORTS TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) Delaware 1-41423 61-1789640 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 2709 N. Rolling Road , Suite 138 Windsor Mill , MD 21244 (Address of principal executive offices, including Zip Code) ( 443 ) 407-7564 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value CNXA Nasdaq Capital Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 1.01 Entry into a Material Definitive Agreement As previously disclosed, on January 6, 2023, Connexa Sports Technologies Inc. (the "Company") entered into a loan and security agreement (the "Loan and Security Agreement") with a one or more institutional investors (the "Lenders") and a certain institutional investor, as agent for the Lenders (the "Agent") for the issuance and sale of, among other securities, a note in an aggregate principal amount of up to $2,000,000 (the "Note"). As previously disclosed, on October 11, 2023, the Company , the Lenders and the Agent entered into a loan and security modification agreement to allow for an additional loan of $1,000,000 pursuant to the loan and security modification agreement . In addition, on October 11, 2023, the Company agreed to issue warrants to purchase up to 169,196 shares of the Company's common stock, par value $0.001 per share (the "Common Stock") at an exercise price of $1.90 per share. These warrants to purchase 169,196 shares of Common Stock are referred to herein as the "October Warrants". As previously disclosed, on December 6, 2023, the Company entered into an inducement offer letter agreement (the "Inducement Letter") with a certain holder (the "Holder") whereby the Holder agreed to exercise for cash warrants to purchase an aggregate of 4,972,203 shares of Common Stock at a reduced exercise price of $0.294 per share in consideration of the Company's agreement to issue new common stock purchase warrants (the "December Warrants" and, together with the October Warrants, the "Lender's Warrants") to purchase up to an aggregate of 9,944,406 shares of Common Stock at an exercise price of $0.294 per share (subject to adjustment). As of February 21, 2024, the total amount owed pursuant to the Note was $3,197,335.65. Of this amount, the Company received gross proceeds of $3 million from the Lenders. On February 21, 2024, the Company and the Lenders and the Agent entered into a Waiver, Warrant Amendment and Second Loan and Security Modification Agreement (the "Waiver, Amendment, and Modification Agreement"). Pursuant to the Waiver, Amendment, and Modification Agreement, the Lenders and the Agent agreed to waive certain events of default with regard to certain covenants and obligations the Company had pursuant to (a) that certain registration rights agreement between the Company and the Lenders and the Agent entered into in September 2022, (b) the Loan and Security Agreement (as modified), and (c) the Inducement Letter. Pursuant to the Waiver, Amendment, and Modification Agreement, the Company and the Lenders and the Agent agreed to modify the Loan and Security Agreement such that the Note is now convertible into up to 9,991,674 shares of Common Stock based on the agreed to conversion price of $0.32. The Company believes that the $0.32 conversion price meets the definition of "Minimum Price" in Nasdaq Listing Rule 5635(d). Pursua

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View this 8-K filing on SEC EDGAR