What are the terms (interest rate, maturity, conversion price) of the convertible promissory notes being exchanged? | ECDA (Aug 14, 2025) | Candlesense
ECDA

What are the terms (interest rate, maturity, conversion price) of the convertible promissory notes being exchanged?

Answer

The press release does not disclose the specific pricing terms of the convertible promissory notes that ECD Automotive Design exchanged. The announcement only states that $10 million of outstanding convertible promissory notes were swapped for 15,000 newly issued shares of Series C Convertible Preferred Stock and that a private placement raised $999,900 for 1,111 additional Series C shares. No details are given on the notes’ interest rate, maturity date, or conversion price.

Because the exact conversion mechanics are unknown, market participants must treat the transaction as a balance‑sheet‑strengthening move rather than a direct valuation signal for the notes themselves. Until the company releases the note indenture or filing that outlines those terms, analysts should focus on the equity dilution (≈0.15 % of the Series C pool) and the cash‑in‑exchange effect on liquidity, while monitoring subsequent SEC filings (e.g., Form 8‑K) for the missing note specifics.

Other Questions About This News

How does the market currently price ECDA's convertible preferred versus the common share? What is the conversion price and ratio for the Series C Convertible Preferred Stock? How does the $10 million debt‑for‑equity exchange affect ECD's leverage ratios and overall balance‑sheet strength? Are there any anti‑dilution or redemption provisions attached to the preferred shares that could affect future equity structure? What is the dilution impact on existing common shareholders from the issuance of 15,000 preferred shares and the private placement of 1,111 shares? How does the $999,900 private placement compare to the current market price of ECDA's common stock? Will the proceeds from the private placement be used for working capital, debt repayment, or growth initiatives? How will this financing affect ECD's earnings per share (EPS) and net income in the next quarters? Does the transaction trigger any covenant breaches or require additional covenant compliance? How does this financing round compare to recent capital raises by competing luxury‑auto restoration firms? Will the new preferred shares affect voting control or board composition? What is the expected impact on the stock's price volatility and short‑interest levels? Does this transaction signal a change in the company's strategic direction or growth outlook? What is the timeline for converting the preferred shares into common equity?