ConnectM Technology Solutions, Inc. Form 8-K Filing

ConnectM Technology Solutions, Inc. has entered into a securities purchase agreement with Ascent Partners Fund LLC for an aggregate gross proceeds of up to $5,000,000. The transaction involves the issuance of senior secured convertible promissory notes and warrants. Initially, $200,000 worth of notes and warrants were issued, with a second tranche of $2,300,000 expected by September 4, 2026. The notes bear 10% annual interest and mature in August 2027. They are convertible into Series C Convertible Preferred Stock upon a listing event, or into Common Stock at the holder's option. The company has granted a first-priority security interest in substantially all its assets, including shares of Blue Cloud Softech Solutions Limited, as collateral. The agreement includes customary representations, warranties, covenants, and registration rights for the resale of underlying securities. Additionally, the company filed a Certificate of Designation for its Series C Convertible Preferred Stock, which carries a 10% cumulative dividend rate, adjustable to 24% during a 'Negative Event'. Holders have conversion rights into Common Stock and redemption rights under specific trigger events. The company has also committed to reserving sufficient authorized shares for conversion and ensuring the Common Stock remains DWAC eligible and freely tradeable.