VIRGINIA CITY, Nev. – Comstock Inc. (NYSE: LODE), a company focused on resource conversion and decarbonization technologies, has announced the issuance of a convertible promissory note valued at an original principal amount of $2,717,500, which was purchased by an investor for $2.5 million. The note carries an 8% annual interest rate and is due by October 31, 2025.
The new financing arrangement allows Comstock to retire a portion of its existing convertible debt, specifically $500,000 worth, thereby reducing its outstanding financial obligations.
The funds from this investment are also earmarked for extending debt maturities and retiring other debts, as explained by Corrado De Gasperis, Comstock's Executive Chairman and CEO. This move is part of the company's strategy to bolster its near-term asset sales and support its stock price.
The 8.0% Convertible Note is redeemable for cash at 125% of the principal amount plus accrued interest, starting 30 days after the closing of the deal. Additionally, it can be converted into common stock at a price that is the lower of 150% of the closing price on the deal's closing date or 80% of the lowest volume-weighted average price of the 10 trading days preceding the conversion notice.
Comstock is currently advancing its commercial operations, including the first commercial demonstration facility in Silver Springs, NV, and is in the preliminary stages of designing three industry-scale facilities with enhanced storage capabilities. These facilities are part of Comstock's zero-landfill initiative, aiming to recycle and reuse all materials that would otherwise become waste.
The company's other division, Comstock Fuels, is demonstrating its readiness for commercial growth and is engaged in discussions for joint development and licensing agreements. It has completed preliminary engineering for a commercial demonstration-scale facility.
This press release statement from Comstock Inc. also includes forward-looking statements regarding future market conditions, operational changes, and business strategies. However, it notes that such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.