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MMTEC, Inc. Financial Report: Debt Restructuring Insights from Form 6-K

$MTC
Form 6-K
Filed on: 2024-12-27
Source
MMTEC, Inc. Financial Report: Debt Restructuring Insights from Form 6-K

Here are the key insights extracted from the provided section of the financial report (Form 6-K) for MMTEC, Inc.:

  1. Company Overview:
  • Name: MMTEC, Inc.
  • Location: Room 2302, 23rd Floor, FWD Financial Center, 308 Des Voeux Road Central, Sheung Wan, Hong Kong.
  • Contact: Tel: +852 36908356
  1. Securities Information:
  • Filing Type: Form 6-K, which is used by foreign private issuers to report significant events.
  • Commission File Number: 001-38766.
  1. Offering Details:
  • On March 31, 2023, MMTEC commenced a registered direct offering of Senior Convertible Promissory Notes with an institutional investor.
  • Original Principal Amount of Notes: $70 million.
  • Purchase Price: $56 million.
  • As of the report date, approximately $36.4 million of the Notes remain outstanding.
  • Maturity Date: The Notes will mature on March 31, 2025.
  1. Amendment to Notes:
  • On December 26, 2024, MMTEC entered into an Extension Agreement with the Purchaser.
  • The maturity of the Notes has been extended from two years to six years, now maturing on March 31, 2029.
  • The interest rate on the Notes has been reduced from 8% per annum to 2% per annum.
  • All other provisions of the Notes remain unchanged.
  1. Exhibit Reference:
  • The Extension Agreement is filed as Exhibit 4.1 and is incorporated by reference in the report.
  1. Signatories:
  • The report is signed by Min Kong, Chief Financial Officer, on December 27, 2024.

These insights indicate a significant restructuring of MMTEC's debt obligations, which may improve liquidity and reduce interest expense over the extended term of the Notes. Such amendments could be viewed positively by investors, as they suggest management is taking steps to improve financial stability.