HUMBL Announces $50 Million Equity Financing Agreement and Bridge Note

Rhea-AI Summary

HUMBL, Inc. (OTC Markets: HMBL) has secured a $3,000,000 bridge note from Brighton Capital Partners. The company also signed an Equity Financing Agreement allowing Brighton to purchase up to $50,000,000 of HUMBL common stock at a 20% discount. The bridge loan is backed by a $3,300,000 Convertible Promissory Note, with a 10% interest rate and a fixed conversion price of $3.15 per share. HUMBL can redeem the note as early as 12 months after its issuance or upon S-1 Registration Statement effectiveness.

Positive

• Closed a $3,000,000 bridge note, enhancing liquidity.
• Equity Financing Agreement allows for up to $50,000,000 in stock purchases at a 20% discount, providing potential capital influx.

Negative

• Convertible Promissory Note issued at a higher conversion price may dilute existing shareholders' equity.
• High interest rate of 10% on the note increases financial burden.

San Diego, California, April 14, 2021 (GLOBE NEWSWIRE) -- HUMBL, Inc. (OTC Markets: HMBL) announced today that it has closed on a $3,000,000 bridge note from Brighton Capital Partners, LLC (Brighton Capital). In addition, HUMBL^® and Brighton Capital have executed an Equity Financing Agreement in which Brighton Capital has agreed to purchase up to $50,000,000 of HUMBL common stock. The right to cause Brighton Capital to purchase these shares is solely at HUMBL’s election.

Pursuant to the Equity Financing Agreement, Brighton Capital agreed to purchase up to $50,000,000 of HUMBL common stock. If HUMBL elects to cause Brighton Capital to purchase shares, the shares will be purchased at a 20% discount. HUMBL will have the right to cause Brighton Capital to purchase shares under the agreement following the effectiveness of an S-1 Registration Statement. 

In exchange for $3,000,000 in cash, HUMBL issued to Brighton Capital a $3,300,000 Convertible Promissory Note. The note bears interest at 10% per annum and is convertible at Brighton Capital’s election at a fixed price of $3.15 per share.

The note also contains a redemption right, where beginning on the earlier of the effective date of an S-1 Registration Statement and the 12-month anniversary of the note, Brighton Capital may cause HUMBL to redeem all or any portion of the note.

HUMBL may pay such redemptions in cash or stock at its election. If HUMBL elects to pay in stock, such payment will be made at 80% of the market price of the stock. The note will serve as a bridge loan to the $50,000,000 Equity Financing Agreement.

About HUMBL

HUMBL is a new, Web 3 platform that seamlessly connects creators, consumers and merchants in the digital economy. HUMBL has three core business divisions: HUMBL Mobile, HUMBL Marketplace, and HUMBL Financial, which work together to package new technologies like blockchain for global consumers.

CONTACT:

HUMBL, Inc.
investors@HUMBLpay.com

Safe Harbor Disclaimer

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, the Company's ability to successfully execute its expanded business strategy, including by entering into definitive agreements with suppliers, commercial partners and customers; general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technical advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, regulatory requirements and the ability to meet them, government agency rules and changes, and various other factors beyond the Company's control.

Attachment

• HUMBL, Inc.

FAQ

What recent financing deal did HUMBL (HMBL) announce?

HUMBL announced a $3,000,000 bridge note from Brighton Capital and an agreement for up to $50,000,000 in equity financing.

What is the discount rate for HUMBL's common stock purchase by Brighton Capital?

Brighton Capital can purchase HUMBL common stock at a 20% discount.

What is the interest rate on HUMBL's Convertible Promissory Note?

The Convertible Promissory Note has an interest rate of 10% per annum.

How does HUMBL plan to redeem its $3,000,000 note?

HUMBL may redeem the note in cash or stock, with stock payments at 80% of market price.

What will trigger Brighton Capital's right to redeem the note?

Brighton Capital can trigger redemption either after the S-1 Registration Statement becomes effective or 12 months after the note issuance.