Business Context and Reporting Period
This Form 6-K filing by Tantech Holdings Ltd. covers the month of January 2024. The report details a material agreement regarding a convertible promissory note issued to Streeterville Capital, LLC.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. Specific debt metrics related to the Streeterville Capital transaction are as follows:
- Original Note Principal: $2.16 million (issued June 29, 2023).
- Forbearance Fee: 10% of the outstanding balance.
- Outstanding Balance Post-Fee: $1,982,717.21.
Material Changes
On December 29, 2023, Streeterville Capital delivered a Redemption Notice which remained unredeemed. On January 12, 2024, the company entered into a Forbearance Agreement. Under this agreement, Streeterville agreed to withdraw the redemption notice and refrain from enforcing remedies in exchange for a 10% forbearance fee. The note remains in full force and effect.
Outlook, Risks, and Contingencies
The filing highlights a liquidity contingency regarding the convertible note. While the immediate enforcement of the redemption notice has been paused, the company has incurred an additional financial obligation (the forbearance fee) and the debt remains outstanding. The agreement explicitly states it is not a waiver of Streeterville's rights or remedies under the original note, except regarding the specific December redemption notice.
Investor Verification Checklist
- Verify the total outstanding debt obligations of Tantech Holdings Ltd. beyond the Streeterville note.
- Confirm the company's current liquidity position to assess its ability to service the $1,982,717.21 note balance.
- Review the full text of the Forbearance Agreement (Exhibit 99.1) for any additional covenants or default triggers.
- Monitor for future redemption notices or enforcement actions by Streeterville Capital.