Insight Acquisition Corp. Enters into Securities Purchase Agreement with Streeterville Capital

Insight Acquisition Corp. (OTCMKTS:INAQU) recently announced that it has entered into a securities purchase agreement (SPA) with Streeterville Capital, LLC, controlled by John M. Fife. The agreement involves the sale of a secured convertible promissory note worth $2,890,000 to Streeterville Capital for a net purchase price of $2,600,000, after factoring in an original issue discount and transaction expenses. This transaction is expected to finalize on the date of Insight’s business combination with Alpha Modus, Corp.

The SPA includes standard representations, warranties, and covenants by Insight, along with typical closing conditions. Under the agreement, Streeterville Capital has been granted the right to provide additional funding of up to $5,000,000 with Insight’s consent within six months after the Note is repaid. Streeterville also holds an exclusive option to establish an equity line of credit or a similar financing arrangement with Insight for a minimum of $20,000,000 for a year following the Purchase Price Date.

Alpha Modus is obligated to guarantee all of Insight’s Note-related obligations through a guaranty agreement, with the Note being secured by security agreements between Streeterville Capital, Insight, and Alpha Modus. Additionally, a subordination and voting agreement will be executed by the Borrowers and Capital Parties to ensure orderly debt repayment.

The Note is set to mature 18 months after the Purchase Price Date, with an interest rate of 10% per annum and 20% premium on prepayment. It can be converted into Common Stock, with a mandatory registration statement filing within 30 days of the Purchase Price Date as a condition.

This deal provides Insight with flexibility in managing its financial obligations and potentially fostering growth opportunities. Shareholders’ approval of the Note and related matters is essential within specified timeframes to comply with Nasdaq Listing Rules.

The full text of the agreements, including the SPA, Guaranty, Security Agreements, IP Security Agreement, Subordination Agreement, and Note, can be referenced in Exhibit 10.1 of the company’s Form 8-K filing with the SEC.

Investors are advised to closely follow the developments surrounding this agreement as it progresses towards completion. Additional details regarding the company’s financial standings and shareholder engagement are available in the official filings with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Insight Acquisition’s 8K filing here.

About Insight Acquisition

Insight Acquisition Corp. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on business in the FinTech, wealth, asset, investment management, and insurance tech sectors.