C-Bond Systems Completes $3 Million Debt Forgiveness and Equity Redemption Transaction with its Secured Creditors

Rhea-AI Summary

C-Bond Systems (OTC PINK:CBNT) has completed a significant financial restructuring transaction valued at over $3 million. The deal includes the forgiveness of more than $2 million in senior debt and the redemption of approximately $1 million in equity, including Series C Preferred shares, common shares, and warrants.

As part of the agreement, C-Bond agreed to a foreclosure on its 80% ownership stake in Patriot Glass Solutions (PGS) subsidiary, along with related patents and other assets. Despite this, the company will maintain its role as a sales representative for PGS products and continue involvement in C-Bond product manufacturing. The company is actively pursuing new business opportunities to ensure continued growth.

Positive

• Elimination of over $2 million in senior debt
• Redemption of approximately $1 million in equity
• Strengthened balance sheet through debt elimination
• Retained ability to sell PGS products as sales representative
• Maintained involvement in C-Bond product manufacturing

Negative

• Loss of 80% ownership stake in Patriot Glass Solutions subsidiary
• Forfeiture of related patents and other assets through foreclosure

This transaction eliminates the Company's secured debt and redeems all its Series C Preferred Stock while positioning the Company for new growth opportunities

SAN ANTONIO, TX and POMPANO BEACH, FL / ACCESS Newswire / February 4, 2025 / C-Bond Systems (the "Company" or "C-Bond") (OTC PINK:CBNT) today announced that it has completed a debt forgiveness, equity redemption, and strict foreclosure transaction with its secured creditors valued at more than $3 million.

Per the terms of the agreement, over $2 million of senior debt was forgiven and approximately $1 million of equity, which included Series C Preferred shares, common shares, and warrants, was redeemed and returned to the Company.

As consideration, the Company agreed to a foreclosure on the Company's 80% ownership of its Patriot Glass Solutions, LLC ("PGS") subsidiary, its related patents, and other assets. The Company will continue to be a sales representative for PGS products and will continue to be involved in the manufacturing of C-Bond products. The Company is also pursuing new business opportunities.

"We are pleased that we are able to substantially strengthen our balance sheet through this significant debt elimination and equity redemption agreement. Although we would have preferred to retain our intellectual property, the net result positions us for continued success with PGS products and new opportunities that the Company is pursuing."

Additional details of the transaction are available in the Company's Form 8-K, which was filed with the SEC today.

About C-Bond
C-Bond Systems, Inc. (OTC: CBNT) markets the patented C-Bond technology, which is independently proven to strengthen glass in architectural applications. For more information, please visit our website: www.cbondsystems.com.

Forward-Looking Statements

Statements in this press release about our future expectations, including the likelihood that we will continue to be a sales representative for PGS products and will continue to be involved in the manufacturing of C-Bond products; the likelihood that the net result positions us for continued success with PGS products and new opportunities that the Company is pursuing; constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. These risks and uncertainties include, without limitation, the Company's ability to successfully commercialize its products; the Company's and its customers' ability to source materials; construction delays; film delays; the Company's ability to raise capital; regulatory risks; as well as other risks. Additional information about these and other factors may be described in the Company's filings with the Securities and Exchange Commission ("SEC") including its Form 10-K filed on April 1, 2024, its Forms 10-Q filed on November 14, 2024, August 19, 2024, and May 14, 2024, and in future filings with the SEC. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.

Contact:

Allison Tomek
C-Bond Systems
atomek@cbondsystems.com

SOURCE: C-Bond Systems Inc

View the original press release on ACCESS Newswire

FAQ

What is the total value of C-Bond Systems' (CBNT) debt forgiveness and equity redemption transaction?

The total transaction value exceeds $3 million, comprising over $2 million in senior debt forgiveness and approximately $1 million in equity redemption.

What assets did C-Bond Systems (CBNT) forfeit in the February 2025 restructuring?

C-Bond Systems agreed to foreclosure on its 80% ownership of Patriot Glass Solutions subsidiary, related patents, and other assets.

How much debt was forgiven in C-Bond Systems' (CBNT) 2025 restructuring?

Over $2 million of senior debt was forgiven as part of the transaction.

Will C-Bond Systems (CBNT) continue to sell Patriot Glass Solutions products after the restructuring?

Yes, C-Bond Systems will continue as a sales representative for PGS products and remain involved in C-Bond product manufacturing.

What equity was redeemed in C-Bond Systems' (CBNT) February 2025 transaction?

Approximately $1 million in equity was redeemed, including Series C Preferred shares, common shares, and warrants.