T Stamp Inc. (IDAI) has entered into a Note Purchase Agreement with Streeterville Capital LLC, issuing a Secured Promissory Note with a principal amount of $5,510,000. The company will receive net proceeds of $5,000,000 from the transaction. The obligations under the note are secured by a first-position security interest in all of the company's assets.
Key Details
- Financing: The company issued a Secured Promissory Note with a principal face value of $5,510,000. Net proceeds are $5,000,000 after accounting for a $500,000 original issue discount (OID) and $10,000 in transaction expenses.
- Terms: The note matures on June 25, 2028 (24 months) and accrues interest at a rate of 9% per annum. Upon an event of default, the interest rate increases to 22%.
- Repayment & Fees: The agreement includes a mandatory prepayment clause, requiring 50% of proceeds from any future financing to be used to repay the note. A 7% exit fee applies to all payments made on or after December 25, 2026.
- Investor Rights & Covenants: The investor has the right to begin redeeming monthly amounts starting June 25, 2027. The agreement contains restrictive covenants that limit the company's ability to incur additional debt or grant liens on its assets without the investor's consent.