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Get filing alertsSmart Powerr Corp. raises $1M in secured debt, with up to $10M more available
Filed April 16, 2026 · Period ending April 10, 2026 · ~1 min read
Key Changes
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Company received $1M cash by issuing $1.05M secured note (8% interest, 24-month term) with $50K discount and $15K in fees. Lender can demand monthly redemptions of up to $200K starting in six months.
Item 1.01 verify on EDGAR → -
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Penalty provisions allow lender to increase debt balance by up to 25% total if trigger events occur (15% per major event, 5% per minor, capped at three each). Uncured triggers become defaults, accelerating debt and raising interest to 18%.
Item 1.01 verify on EDGAR → -
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Agreement includes commitment for up to $9M in additional financing through two more notes (A-2 for $1M, B Note for $8M), subject to conditions. The $8M would be held in controlled account at subsidiary CREG Holdings LLC.
Item 1.01 verify on EDGAR → -
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Company restricted from issuing securities with variable conversion prices, reset provisions, or anti-dilution features without lender consent. Cannot grant liens on subsidiary assets or enter agreements preventing securities issuance to lender.
Item 1.01 verify on EDGAR →
Summary
Smart Powerr Corp. closed a $1 million secured debt financing with Streeterville Capital on April 10, 2026, netting $1 million cash against a $1.05 million note after discounts and fees.
The 24-month note carries 8% interest and includes aggressive terms: the lender can demand monthly redemptions of up to $200,000 starting in six months, and penalty provisions allow the lender to increase the debt balance by up to 25% if certain trigger events occur. Uncured triggers become defaults that accelerate the entire debt and double the interest rate to 18%.
The deal contemplates up to $9 million in additional financing through two more notes, with the largest ($8 million) held in a controlled account at a newly formed subsidiary. The company also accepted restrictive covenants limiting its ability to issue certain types of securities without lender consent, particularly those with variable pricing or anti-dilution features. Retail investors should monitor whether the company draws the additional $9 million and watch for any trigger events or defaults that could substantially increase the debt burden. The lender's redemption rights starting in October 2026 will create near-term cash flow pressure.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Smart Powerr Corp. entered into a $1M secured note with Streeterville Capital, with potential for up to $10M in additional financing.
Added in current filing · verify on EDGAR →
Pursuant to the terms of the Purchase Agreement, until all of the Company’s obligations under the Notes and all other transaction documents are paid and performed in full, the Company agreed to comply with certain covenants, including but not limited to the following: (i) the Company agreed not to make any Restricted Issuances (as defined in the Purchase Agreement and described below) or grant any lien, security interest or encumbrance, other than Permitted Liens (as defined in the Security Agreement) on any of CREG Sub’s assets, in each case without the Lender’s prior written consent, which consent may be granted or withheld in the Lender’s sole discretion, and (ii) the Company agreed not to enter into any agreement or otherwise agree to any covenant, condition, or obligation that locks up, restricts in any way or otherwise prohibits the Company from issuing Company securities to the Lender or any of the Lender’s affiliates.
The company is restricted from issuing certain types of securities without lender consent, particularly those with variable conversion prices, reset provisions, or anti-dilution features tied to stock price changes. The company also cannot grant liens on the subsidiary's assets or enter agreements that would prevent issuing securities to the lender. Standard equity offerings, ATM facilities, employee stock plans, and M&A consideration are generally permitted.
Event · Item 9.01 — Financial Statements and Exhibits
Smart Powerr Corp. entered into a Note Purchase Agreement and issued A-1 Notes on April 10, 2026.
Added in current filing · verify on EDGAR →
4.1 | Form of A-1 Note dated April 10, 2026 | 10.1
Form of Note Purchase Agreement dated April 10, 2026
The company executed a Note Purchase Agreement and issued A-1 Notes on April 10, 2026.Investors should review the attached exhibits for complete details on the debt structure and repayment obligations.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 2, 2026 · How we verify