Clean Energy Technologies, Inc. Announces Entry into Convertible Note Financing with 1800 Diagonal Lending LLC
Key Highlights:
- Clean Energy Technologies, Inc. (“CETY” or the “Company”) has entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC, a Virginia-based institutional investor.
- The transaction involves the sale of a convertible promissory note with a principal amount of \$147,840 for a purchase price of \$132,000, effective July 29, 2026.
- The note is convertible into shares of CETY common stock and carries a 12% interest rate.
- The funds raised are expected to bolster the Company’s liquidity and may be used for general corporate purposes, potentially including working capital, capital expenditures, and other strategic initiatives.
Transaction Details
On July 29, 2026, Clean Energy Technologies, Inc. entered into a definitive agreement with 1800 Diagonal Lending LLC. Under the terms of the Securities Purchase Agreement, CETY issued a convertible promissory note (the “1800 Note”) with a face value of \$147,840. In exchange, CETY received a purchase price of \$132,000, representing an original issue discount. The transaction is expected to provide the Company with immediate access to additional capital.
Terms of the Convertible Note
- Principal Amount: \$147,840
- Purchase Price: \$132,000
- Interest Rate: 12% per annum, applied from the issuance date
- Conversion: The note is convertible into CETY’s common stock at terms specified in the note agreement. The shares issued upon conversion are referred to as “Conversion Shares.”
- Prepayment: The note allows for prepayment by the Company at a premium, depending on the timing of prepayment. For example, prepayment within 120 days from issuance is at 97% of the outstanding amount, and between 121-180 days at 98%.
- Maturity: Specific maturity and conversion price details are outlined in the note, and investors should review the full agreement for more information.
Regulatory and Compliance Matters
- The securities issued in this transaction have not been registered under the Securities Act of 1933 and are being sold in reliance on the exemption provided by Section 4(a)(2) for private placements. There was no general solicitation or public offering.
- The note and any shares issued upon conversion may bear restrictive legends, limiting transfer until certain conditions are met or an opinion of counsel is provided.
- As part of the agreement, the Company reaffirms its commitment to remain compliant with its SEC reporting requirements, a critical factor for maintaining investor confidence and NASDAQ listing status.
Potential Shareholder Impact
- Dilution Risk: Because the note is convertible into common stock, there is a risk of dilution for existing shareholders if the note is converted.
- Share Price Sensitivity: The issuance of convertible notes can be perceived as a need for additional financing, which may impact investor sentiment and share value in the short-term. However, the infusion of capital may also strengthen the Company’s balance sheet and support future growth.
- Compliance Requirements: Failure to maintain SEC reporting obligations or NASDAQ listing could trigger default provisions in the note, which may have adverse effects on the Company and shareholder value.
Exhibits Filed
- Exhibit 10.1: Full Securities Purchase Agreement between CETY and 1800 Diagonal Lending LLC (dated July 28, 2026)
- Exhibit 10.2: Convertible Promissory Note issued by CETY to 1800 Diagonal Lending LLC
- Exhibit 104: Cover Page Interactive Data File (embedded within the Inline XBRL Document)
Corporate Statement
The agreement was duly executed by Kambiz Mahdi, Chief Executive Officer of Clean Energy Technologies, Inc.
Investor Takeaway
This financing transaction is potentially price-sensitive due to its impact on the Company’s capital structure and the possibility of future dilution. Investors should review the full terms of the convertible note and consider both the immediate liquidity benefit and the long-term implications for share value. The Company’s ability to meet its SEC reporting obligations and maintain its NASDAQ listing remains a key consideration.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult the official SEC filings and their financial advisors before making any investment decisions. Clean Energy Technologies, Inc. may be subject to risks not fully addressed in this summary, including regulatory, operational, and market risks related to convertible debt financing and equity dilution.
