Key Highlights

• Newton Golf issued a $200,000 convertible note and a warrant for 20,000 shares, bringing cash proceeds to $200,000.

• Total outstanding convertible notes now total $2,050,000 with warrants covering up to 205,000 shares.

• Notes accrue 10% annual interest, mature in 18 months, and convert at $1.60 per share; conversion may accelerate if stock trades at $3.00 for ten days.

Newton Golf Company, Inc. (NASDAQ: NWTG) disclosed a recent financing transaction that added a $200,000 unsecured convertible note together with a warrant for 20,000 shares, resulting in cash proceeds equal to the note amount.

Funding Overview

The latest closing brings the aggregate funded amount of the convertible‑note program to $2,050,000. Under the original financing agreement, investors may still purchase notes up to a principal total of $750,000 and receive warrants for up to 75,000 shares.

Note Terms

Each convertible note carries interest at a 10% annual rate, which is paid in kind. The notes mature after a period of one and a half years from issuance, and the company may redeem any portion prior to maturity without incurring a penalty. The total warrant coverage now reaches up to 205,000 shares, with the new issuance adding 20,000 shares.

All warrants remain exercisable for a multi‑year term from the date of issuance.

Conversion Mechanics

Upon maturity, any outstanding principal together with accrued interest automatically converts into common shares at a conversion price of $1.60 per share. If the Company’s common stock trades at or above $3.00 for a consecutive period, the company may elect to trigger conversion with appropriate notice. Default triggers may include missed payments or breaches of covenants.

In a change‑of‑control situation, note holders may elect repayment or conversion at the same $1.60 conversion price.

Investor Impact

The financing structure furnishes Newton Golf with flexible capital while offering investors the opportunity to convert debt into equity at a discount to market pricing. The remaining capacity for additional notes and warrants provides the company with room to fund future growth initiatives in the golf‑equipment sector.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.