Dolphin Entertainment , Inc. (NASDAQ:DLPN), a Florida-based entertainment company, has amended its promissory notes with an existing investor, as disclosed in a recent SEC filing. The company has agreed to extend the maturity date of these notes to January 13, 2027, and has set a minimum conversion price of $1.00 per share.
The amendments, which were agreed upon on Monday, involve three promissory notes originally issued to the investor. According to the terms, the investor has the option to convert the outstanding principal and accrued interest into shares of Dolphin Entertainment’s common stock. The conversion price will be based on the 90-trading day average price per share as of the notice of conversion date, with the stipulation that it will not be lower than $1.00.
This move effectively lowers the minimum conversion price for the notes and extends the period during which the investor can choose to convert their debt into equity. The total principal amount of the notes stands at $1,500,000.
The company has provided a detailed description of the notes and the amendments in its Annual Report on Form 10-K filed on March 29, 2024, and in the attached Exhibit 10.1 of the SEC filing. The decision to amend the notes was signed off by Mirta A. Negrini, Dolphin Entertainment’s Chief Financial and Operating Officer, on Friday.
This financial maneuver aims to provide Dolphin Entertainment with extended financial flexibility while offering the note holder a prolonged investment horizon with a potentially advantageous conversion option. The adjustment to the promissory notes is part of the company’s broader financial strategy as it navigates the dynamic entertainment industry landscape.
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