Netcapital Inc. closed the first tranche of a Securities Purchase Agreement with Hinterland Partners LLC, receiving $402,743 in proceeds. The company issued a promissory note with an outstanding principal balance of $447,492.22, bearing a 12% one-time interest charge and maturing 12 months after funding. The transaction includes a conversion feature allowing Hinterland to convert the debt into common stock at 85% of the lowest traded price over the preceding seven days. Additionally, Netcapital issued 64,387 commitment shares as part of the consideration. A second tranche of up to $175,000 is contingent on the company curing delinquent filings and maintaining Nasdaq listing status within 90 days. The proceeds are designated for business development and general working capital.
Netcapital Inc. operates in the financial technology sector, providing crowdfunding platforms for private equity and real estate investments.
