Stable Road Acquisition Secures Convertible Note and Warrants with Space Infrastructures Ventures, LLC

On October 24, 2024, Stable Road Acquisition (“Stable Road” or the “Company”) entered into a notable agreement with Space Infrastructures Ventures, LLC (“SIV”). This arrangement involves a secured convertible promissory note (the “Convertible Note”) that allows Stable Road to borrow up to $3.0 million, structured in two phases. The first phase comprises an initial loan of $2 million, followed by a potential additional $1 million, which can be borrowed between December 22, 2024, and February 14, 2025. Borrowings under the Convertible Note will accrue interest at 15% per year, with a maturity date of October 24, 2025.

SIV holds the right, post a six-month period from the note’s issuance date, to convert outstanding obligations under the Convertible Note into shares of Stable Road Class A Common Stock at a price of $0.5292 per share, subject to adjustments for specific corporate events.

As part of the agreement, Stable Road will issue warrants to SIV for the purchase of up to 5,668,934 shares of Common Stock at $0.5292 per share (the “SIV Warrants”). These warrants are subject to adjustments in case of certain corporate actions and cannot be exercised before April 24, 2025, with an expiration date set for April 24, 2029.

To prevent SIV’s ownership in Stable Road from exceeding 9.99% of outstanding Common Stock shares, conversion of the Convertible Note and exercise of the SIV Warrants must comply with predetermined ownership limits. The Company is committed to seeking shareholder approval where applicable and ensuring adherence to Nasdaq regulations.

The proceeds from the Convertible Note are designated for funding daily operational needs and general business activities in alignment with past practices. Specific actions such as asset procurement, financing extensions, or significant capital expenditures need SIV’s approval as stated in the agreement.

Stable Road retains the option to prepay the Convertible Note in full at any time, subject to a 10% prepayment fee. Defaults specified in the agreement, including failure to pay outstanding amounts or major corporate events, may lead to the accelerated maturity of the Convertible Note.

In addition to the Convertible Note and SIV Warrants, Stable Road will issue warrants to an independent investor for the purchase of up to 5,000,000 shares of Common Stock at $0.575 per share (the “Investor Warrants”). Similar to the SIV Warrants, these come with ownership restrictions to safeguard against excessive influence on company control.

This disclosure is in compliance with Stable Road’s recent SEC Form 8-K filing, which underscores the significant financial arrangements the company has entered into with SIV. The transaction showcases Stable Road’s strategic approach to securing financing and fostering growth in line with its operational objectives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Stable Road Acquisition’s 8K filing here.

About Stable Road Acquisition

Stable Road Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2019 and is based in Venice, California.