Broadcom named strategic vendor for Walmart virtualization solutions
Interactive Strength Inc. (NASDAQ:TRNR), a manufacturer of electronic and electrical equipment, has entered into an agreement to restructure its outstanding debt through the issuance of new secured promissory notes. On Monday, the company exchanged five existing promissory notes, which were previously in default, for new exchange notes with an accredited investor.
The original notes, totaling $4.2 million and held by a former principal stockholder, had interest rates ranging from 2.5% to 5.0% and maturity dates spanning from 2021 to 2022. After a notice of default was issued in August 2023, Interactive Strength Inc. negotiated a settlement, which culminated in the exchange agreement dated February 4, 2025.
The new exchange notes, accruing interest at a rate of 5% per annum, have principal amounts totaling approximately $5.38 million, reflecting accrued interest and unpaid charges. The maturity dates for these notes are set for April and May 2025. Notably, these notes are convertible into common stock at a price of $2.04 per share, subject to adjustments.
This financial maneuver aims to provide the company with more flexibility in managing its financial obligations. The conversion feature of the exchange notes also offers the potential for equity conversion, potentially diluting current shareholders but also potentially easing the company’s debt burden.
The exchange and issuance of these notes were conducted in accordance with Section 3(a)(9) of the Securities Act of 1933, which exempts transactions involving the exchange of securities with existing holders from registration requirements.
This move comes as Interactive Strength Inc. seeks to stabilize its financial position and ensure continued operations. The company’s management has not provided any further comments on the transaction beyond the details disclosed in the SEC filing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.