ScanTech AI Systems Faces Accelerated Repayment and Increased Default Interest After Alleged Loan Covenant Breach with SPCC and 340 Broadway Holdings
ScanTech AI Systems Inc. has disclosed recent developments related to its existing financing agreements with Southern Point Capital Corporation (SPCC) and Polar Multi-Strategy Master Fund. The company previously entered into a Securities Purchase Agreement with 340 Broadway Holdings, LLC, resulting in the issuance of a senior secured promissory note with a principal amount of up to $1.5 million, bearing 15% annual interest and maturing in July 2026. A portion of this note was later assigned to SPCC. On October 10, 2025, SPCC notified ScanTech that the company's recent Purchase Agreement with ARC Group International Ltd. allegedly violated covenants of the promissory note, triggering a default event and mandatory repayment. As of October 10, 2025, SPCC claims the required repayment amount is $1,625,883, with default interest accruing at 18% per annum and an increased conversion discount from 20% to 45%. ScanTech is currently reviewing and may dispute these assertions. Additionally, Polar Multi-Strategy Master Fund issued a notice regarding unregistered shares linked to a separate $1.25 million promissory note, which could affect ScanTech's financial obligations.
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