Wytec International enters $180,550 note agreement with Labrys Fund II

Published 09/10/2025, 20:04
Wytec International enters $180,550 note agreement with Labrys Fund II

Wytec International, Inc. (OTCQB:WYTC), currently trading at $1.39 and rated as financially "Weak" according to InvestingPro metrics, has entered into a securities purchase agreement with Labrys Fund II, L.P., according to a statement filed with the Securities and Exchange Commission. The company’s current financial position shows concerning metrics, with revenue of just $0.11M in the last twelve months and negative EBITDA of $2.36M. The agreement, which closed on Monday, involves Wytec issuing a promissory note with a principal amount of $180,550.

The note includes an original issue discount of $23,550 and was purchased by Labrys for $157,000. A one-time interest charge of 12% was applied to the principal amount at issuance, totaling $21,666. With a concerning current ratio of 0.04, as revealed by InvestingPro analysis, this financing move appears crucial for the company’s operations. Subscribers to InvestingPro can access over 30 additional financial health indicators and expert insights. The note matures on October 3, 2026, and is scheduled to be repaid in installments of $28,888 each on April 3, May 4, June 3, July 3, August 3, and September 3, 2026, with any remaining balance due at maturity.

Wytec has the right to prepay the note in full with a minimal discount and without penalty at any time before 181 days from issuance, provided that three trading days’ written notice is given.

If any principal or interest is not paid when due, the unpaid amount will accrue interest at the lesser of 22% per year or the maximum rate allowed by law. Should Wytec miss a scheduled payment or trigger an event of default, Labrys may convert any outstanding principal and interest into shares of Wytec’s common stock at a conversion price equal to 65% of the lowest trading price over the 20 trading days prior to conversion. The conversion is subject to a cap, preventing Labrys and its affiliates from owning more than 4.99% of Wytec’s outstanding common stock at any time.

Additionally, if Wytec receives more than $500,000 in cash proceeds from specified sources before the note is fully repaid or converted, Labrys may require up to 25% of the excess proceeds to be applied toward repayment of the note.

This information is based on a press release statement filed with the SEC.

In other recent news, Wytec International announced the resignation of Robert Cook from its board of directors and audit committee. The resignation, effective August 15, 2025, was voluntary and attributed to personal reasons, according to the company’s SEC filing. Wytec has not yet appointed a replacement for Mr. Cook’s positions. Additionally, Wytec is set to host a Public Safety/Investor Seminar on September 2, 2025, in San Antonio. The event will showcase the company’s gunshot detection and drug sensing technology. In conjunction with this, Wytec has introduced a $10 million secured note offering with a 9.5% return, specifically for accredited investors under SEC Rule 506(c). The funds raised will support a multi-government sales initiative through telecom master channel agents.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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