Cyber Enviro-Tech, Inc. 8-K

What Happened

• Cyber Enviro‑Tech, Inc. (CETI) announced on March 20, 2026 that it entered an Equity Purchase Agreement with Monroe Street Capital Partners, LP. Under the agreement the company may, at its discretion, sell up to $30,000,000 of its common stock to the investor over the Commitment Period subject to specified conditions and procedures. As immediate consideration, CETI issued 3,000,000 shares to the investor on execution.

Key Details

• Maximum commitment: up to $30,000,000 of common stock; Commitment Period begins March 20, 2026 and ends on the earlier of full draw, 24 months, certain terminations, or other specified events.
• Immediate shares issued: 3,000,000 "Initial Commitment Shares" issued on signing; additional 3,000,000 "Fulfillment Commitment Shares" will be issued upon each of the first three Trigger Events (each Trigger Event equals $2.5M of aggregate gross proceeds), subject to adjustments.
• Put mechanics & pricing: Company may deliver Put Notices (minimum $25,000 per Put; max per Put the lesser of $500,000 or 200% of recent average daily trading value). Purchase price per share will be the lesser of 85% of the lowest traded price immediately before the Put Date or 85% of the lowest traded price during the Valuation Period.
• Registration: CETI must file a registration statement covering resale of the Commitment and Put Shares within 30 days of March 20, 2026 and use best efforts to have it declared effective within 90 days after filing; registration must be maintained until the investor has sold all registrable securities and the maximum commitment is fully drawn.
• Investor protections and limits: investor subject to a beneficial ownership cap of 4.99%; CETI is restricted from entering other equity lines or variable rate transactions without the investor’s consent during certain periods.

Why It Matters

• This agreement gives CETI access to up to $30M of potential capital over the next up-to-24 months, which can be used for operations, growth, or debt needs, but only if the company elects to draw funds and conditions are met.
• The deal creates immediate dilution (3,000,000 shares already issued) and the potential for additional dilution if CETI sells shares under the facility; shares sold under Puts may be issued at up to a 15% discount to recent low traded prices.
• The required registration of the shares enables resale by the investor once effective, and the agreement includes customary covenants and termination events investors should monitor (e.g., limits tied to registration effectiveness and bankruptcy events).