Applife Digital Solutions enters $170,000 convertible note agreement with investor

Applife Digital Solutions Inc., trading under the ticker ALDS on the OTC market, recently announced the signing of a $170,000 convertible note agreement with an accredited investor. This transaction, detailed in a recent Securities and Exchange Commission filing, entails the issuance of a 6% convertible promissory note with an original issue discount.

The note, worth $170,000, was issued at a discount amounting to $17,000, leading to a purchase price of $153,000. The note accrues 6% annual interest and is set to mature on August 5, 2027. During the six-month period following issuance, the investor retains the option to convert a portion or all of the outstanding principal and accrued interest into Applife Digital Solutions' common stock.

The conversion ratio, set at 65% of the lowest trading price of the company's shares over the 20 days preceding the conversion date, provides an attractive conversion incentive. Certain restrictions on beneficial ownership apply, with a limit of 4.99% for the investor, adjustable to 9.9% upon providing written notice to the company.

The issuer maintains the right to prepay the note within the first 180 days of issuance, subject to varying prepayment premiums based on the amount involved. Standard events triggering default are specified, including a possible discount increase in the conversion price should a default occur. Upon signing the agreement, Applife Digital Solutions reserved the right to issue additional shares in the future, contingent on the stock's trading price at the time of conversion.

The private placement transaction, exempt from registration under the Securities Act of 1933, underscores the company's commitment to structured financial arrangements with its investors.