Clean Energy Technologies, Inc. Announces Significant Balance Sheet Improvement due to Financial Restructuring

COSTA MESA, CA., Nov. 20, 2023 (GLOBE NEWSWIRE) -- Clean Energy Technologies, Inc. (NASDAQ: CETY) (“CETY” or the “Company”), a rising leader in clean energy solutions, today announces significant balance sheet improvement due to a key financial structuring.

Mast Hill Fund, L.P. (“Mast Hill”), a long-term investor and partner of CETY converted an aggregate of $1.95 million notes including accrued interest from liability to equity. This increases shareholder’s equity from $5.38 million to approximately $7.33 million. Liabilities have decreased from $5.7 million to approximately $3.75 million because of this debt restructuring.

The terms of the debt restructuring contribute to a favorable scenario for CETY, increasing CETY’s financial flexibility and allows more financial resources to be deployed for growth initiatives. This conversion from debt to preferred equity offers multiple key benefits: Firstly, it enables the notes to be converted at a 20% discount to the market price, thereby closely aligning the investor's interests with the Company's performance. Furthermore, the converted notes no longer require mandatory redemption in cash and cannot default, significantly reducing financial pressures. Additionally, the notes will now receive a 15% dividend, replacing the previous 15% interest rate, until the preferred shares are converted or settled. Moreover, the converted securities will be subject to customary transfer restrictions. Finally, the Company retains the option to settle the notes using future capital raises at its own discretion.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy any shares of common stock issuable upon conversion of the notes, nor will there be any sale of any such shares of common stock, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. The shares of common stock issuable upon conversion of the notes, if any, will not be registered under the Securities Act or any state securities laws, and unless so registered, such shares may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.