$5,000,000 in aggregate gross proceeds is the ceiling on ConnectM Technology Solutions, Inc.'s (CNTM) new senior secured convertible note facility with Ascent Partners Fund LLC, per a Form 8-K filed with the SEC on August 31, 2026. The first tranche closed that same day: a $200,000 principal note purchased at $228,571.43, an original issue discount of $28,571.43. The company expects a second tranche of $2,300,000 to close by September 4, 2026, putting the first two draws at $2,500,000 of the $5,000,000 capacity.
| Item | Amount / Term |
|---|---|
| Facility (gross proceeds) | $5,000,000 |
| Tranche 1 principal | $200,000 |
| Tranche 1 purchase price | $228,571.43 |
| Original issue discount | $28,571.43 |
| Tranche 2 (projected) | $2,300,000 |
| Tranches 1+2 combined | $2,500,000 |
| Note interest rate | 10% per annum |
| Maturity | August 2027 |
| Warrant term | 5 years |
Collateral and investor terms
The Security Agreement grants Ascent Partners a first-priority lien on substantially all ConnectM assets. The collateral package includes 160,000,000 equity shares of Blue Cloud Softech Solutions Limited. Negative covenants bar ConnectM from incurring additional debt, creating new liens, making restricted payments, or executing certain equity issuances without Ascent Partners' consent. The fund holds a right of first refusal on subsequent financings (33% participation generally, or 100% for equity lines of credit) and most-favored-nation protections.
Series C Convertible Preferred Stock
On September 3, 2026, ConnectM filed a Certificate of Designation with the Delaware Secretary of State designating 4,000 shares of Series C Convertible Preferred Stock at par value $0.0001 per share and a stated value of $1,000 per share. Note One automatically converts into Series C Preferred upon a Listing Event; the holder also retains an option to convert into common stock at a conversion price set per the agreement. The Series C carries cumulative dividends at 10% per annum on stated value, payable monthly in cash or by increasing the conversion amount. A Negative Event steps the dividend rate to 24% per annum. Holders may convert into common stock beginning six months after the Listing Event, at the lower of the Listing Event Price or, during a Negative Event, a price per the Certificate of Designation.
ConnectM must file a registration statement covering resale of shares underlying the notes and warrants within 60 days of the closing date.