Form 8-K - Current report
November 12 2024 - 4:00PM
Edgar (US Regulatory)
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0001688126
0001688126
2024-11-08
2024-11-08
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): November 8, 2024
The
Crypto Company
(Exact
name of registrant as specified in its charter)
Nevada |
|
000-55726 |
|
46-4212105 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
23823
Malibu Road, #50477, Malibu, CA |
|
90265 |
(Address
of principal executive offices) |
|
(Zip
Code) |
(424)
228-9955
(Registrant’s
telephone number, including area code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
None |
|
N/A |
|
N/A |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
1.01 Entry into a Material Definitive Agreement.
The
Crypto Company (the “Company”) borrowed funds pursuant to the terms of a Securities Purchase Agreement (the “AJB SPA”)
entered into with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $33,000 (the
“AJB Note”) to AJB in a private transaction for a purchase price of $29,700, each fully executed on November 8, 2024. In
connection with the sale of the AJB Note, the Company also paid certain fees and expenses of AJB. After payment of the fees and expenses,
the net proceeds to the Company were $24,700, which will be used for working capital, to fund potential acquisitions or other forms of
strategic relationships, and other general corporate purposes.
The
maturity date of the AJB Note is May 1, 2025. The AJB Note bears interest at a rate of twelve percent
(12%) per calendar year from the date of issuance. The interest shall accrue on a monthly basis and is payable on the maturity date or
upon acceleration or by prepayment or otherwise. The Company may prepay the AJB Note at any time without penalty. Under the terms
of the AJB Note, the Company may not issue additional debt that is not subordinate to AJB, must comply with the Company’s reporting
requirements under the Securities Exchange Act of 1934, and must maintain the listing of the Company’s common stock on the OTC
Market or other exchange, among other restrictions and requirements. The Company’s failure to make required payments under the
AJB Note or to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default
under the AJB SPA or AJB Note, the AJB Note will bear interest at the lesser of 18% per annum or the maximum amount permitted under law,
AJB may immediately accelerate the AJB Note due date, AJB may convert the amount outstanding under the AJB Note into shares of Company
common stock at a discount to the market price of the stock, and AJB will be entitled to its costs of collection, among other penalties
and remedies.
The
Company provided various representations, warranties, and covenants to AJB in the AJB SPA. The Company’s breach of any representation
or warranty, or failure to comply with the covenants would constitute an event of default.
The
Company also entered into a Security Agreement with AJB pursuant to which the Company granted to AJB a security interest in all of the
Company’s assets to secure the Company’s obligations under the AJB SPA and AJB Note.
The
foregoing descriptions of the AJB SPA, AJB Note, and Security Agreement do not purport to be complete and are qualified in their entirety
by the full text of the forms of the AJB SPA, AJB Note, and Security Agreement which will be filed as exhibits to a subsequent quarterly
report to be filed by the Company.
The
offer and sale of the AJB Note was made in a private transaction exempt from the registration requirements of the Securities Act of 1933,
as amended (the “Securities Act”), in reliance on exemptions afforded by Section 4(a)(2) of the Securities Act and Rule 506(b)
of Regulation D promulgated thereunder.
Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The
information set forth under Item 1.01 is incorporated herein by reference.
Item
3.02 Unregistered Sales of Equity Securities.
The
information set forth under Item 1.01 is incorporated herein by reference.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
THE
CRYPTO COMPANY |
Date:
November 12, 2024 |
|
|
By: |
/s/
Ron Levy |
|
Name: |
Ron
Levy |
|
Title: |
Chief
Executive Officer, Chief Operating Officer and Secretary |
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