Clean Energy Technologies, Inc. (CETY) · Nov 6, 2026 · New debt

CETY secures $2M financing, but convertible dilution looms

$2M convertible note — $2.0M proceeds; 12% interest; conversion at 85% of lowest 10-day price

Clean Energy Technologies raised $2M through a convertible note, extending liquidity while adding high-cost debt and meaningful dilution risk.

Clean Energy Technologies is a small clean-energy operator spanning heat-recovery systems, waste-to-energy, engineering services and China natural-gas trading, while relying on outside financing and strategic partnerships to support a business under going-concern pressure.

The immediate benefit is real liquidity, not business acceleration. CETY sold FuFront a $2.0 million note for $2.0 million in cash, with proceeds earmarked for business development and payments to service providers. 〔0〕

MeasureCurrentCompared with
Note principal (Securities Purchase Agreement)$2.0M$500K prior note
Interest rate (Note)12%16% default rate
Conversion price (Note)85% of lowest 10-day price—
Share issuance cap (Securities Purchase Agreement)2,432,00412,166,106 shares outstanding
Maturity date (Note)October 3, 2027—

The financing terms are shareholder-unfriendly. After six months, FuFront can convert principal and interest at 85% of the lowest traded price over the prior ten trading days, creating a variable-price conversion that becomes more dilutive if CETY’s share price weakens. The note also allows a $1,750 deduction from each conversion amount for holder fees.

The exchange cap limits near-term dilution but does not remove the overhang. Without shareholder approval, CETY cannot issue more than 2,432,004 shares under the deal—about 20% of the 12.17 million shares outstanding disclosed in the purchase agreement. However, the company has no contractual obligation to seek that approval, while the note reserves at least 2,432,005 shares and gives the holder broad conversion and enforcement rights.

This extends the existing financing pattern rather than changing the operating story. CETY had already raised $500,000 through another convertible note in October, and its latest quarterly filing described additional debt and equity financing as part of management’s plan to address substantial doubt about continuing as a going concern. The larger FuFront raise improves short-term funding capacity, but the 12% coupon, discount conversion formula and repeated reliance on convertibles point to costly capital rather than proof that the underlying projects are self-funding.

Bottom line: CETY has bought additional operating runway, but at terms that increase future dilution and debt pressure. It modestly helps liquidity while leaving the core financing and going-concern problem unresolved.

What to watch next

Note conversion eligibility begins April 3, 2027

Original filing on SEC EDGAR

More Clean Energy Technologies, Inc. news

CETY secures $2M financing, but convertible dilution looms | CETY Stock News
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