ScanTech AI Systems Inc. announced that it has entered into a non-binding term sheet with ARC Group International Ltd. for a proposed $20 million subordinated convertible note facility financing. Under the terms of the agreement, the company would have access to up to $6 million upon the initial closing, following the filing of a registration statement with the U.S. Securities and Exchange Commission and receipt of required shareholder approvals. Additional tranches of $2 million each are expected to be available every forty-five trading days after the first tranche, subject to customary conditions. The convertible notes bear a 9% annual dividend and a 3% original issue discount, and are convertible into shares of the company's common stock at a price equal to 110% of the closing price on the trading day prior to signing, subject to a $1.00 per share floor. The term sheet is non-binding and the completion of the financing is subject to negotiation and execution of definitive agreements, due diligence, and other customary closing conditions.