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$2,142,857 is the face value on the convertible promissory note Banzai International, Inc.
(Nasdaq: PARA) agreed to issue in a September 4, 2026 private placement, and the OID math closes immediately: a 30% original issue discount on the initial leg produces exactly $1,500,000 in gross proceeds to the company at Initial Closing.
The remaining $1,000,000 is committed in two equal $500,000 tranches contingent on specified future events, which would push aggregate principal to $3,571,428 if both fund.
Tranche and OID structure | Tranche | Cash in | Principal | Warrants | |---|---|---|---| | 1, Initial Closing (reported) | $1,500,000 | $2,142,857 | 779,221 shares | | 2 (projected) | $500,000 | $714,285 | 259,740 shares | | 3 (projected) | $500,000 | $714,285 | 259,740 shares | | Total if all fund | $2,500,000 | $3,571,427 | 1,298,701 shares | Each projected $500,000 tranche adds $714,285 to the note's face at the same 30% discount; two additional legs on top of the initial $2,142,857 sum to $3,571,427, in line with the $3,571,428 cap in the filing.
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