AppTech Payments raises $505k via convertible note and stock issuance

AppTech issued a $560,000 convertible promissory note (with $55,000 original issue discount, netting $505,000 gross proceeds) plus 80,000 common shares to GS Capital Partners. The note bears 10% interest, matures November 2027, and is convertible at $2.00/share with a 4.99% beneficial ownership cap. Dilution from the direct stock issuance and future conversion, combined with a 150% default penalty clause and aggressive conversion discount mechanics (80% of lowest VWAP on default), signals financial stress and unfavorable terms that weigh on equity holders.

AppTech Payments raised about $505,000 in cash by borrowing from an investor and giving them both a convertible bond and company shares. The deal includes a high default penalty and conversion terms that could heavily dilute existing shareholders.