Generation Alpha, Inc. announced that it has received $0.15 million in funding from Yorkville Advisors Global LP
February 12, 2020
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Generation Alpha, Inc. (OTCPK:GNAL) announced that it has entered into securities purchase agreement with existing investor, YA II PN, LTD., a fund managed by Yorkville Advisors Global LP and issued secured convertible debentures for gross proceeds of $150,000 on February 13, 2020. The company also issued a warrant, convertible into 3,000,000 shares at an exercise price of $0.05 per share expiring on February 13, 2025. The bonds will mature on August 10, 2021 and carry rate of interest of 10% per annum. The rate of interest shall be 15% per annum in the event of default. The debentures shall be convertible into common shares at a conversion price equal to 75% of the lowest VWAP of the company. The 2020 Note provides the company with a redemption right, pursuant to which the Company, upon 10 days’ prior notice to the Investor, may redeem. The securities are issued pursuant to exemption provided under regulation D. The company shall incur $10,000 as a due diligence and structuring fee to YA Global II SPV, LLC and shall pay to the designee a commitment fee of $15,000 in the transaction. The company may redeem in whole or part the outstanding principal and interest under the debentures.
Generation Alpha, Inc. is focused on the research, design, development and manufacturing of indoor horticulture lighting, plant nutrient products and ancillary equipment. The Company operates through the manufacture and distribution of its products. The Company is focused on bringing products and solutions to commercial and retail cannabis growers in both the medical and adult-use recreational space in legal markets across the United States. The Companyâs product line includes hydroponic resellers/retail and direct-to-consumer/online. The Companyâs lighting and nutrient customers include retail stores, distributors and commercial growers in the United States and abroad. Its product line has evolved from digital ballasts to a line of lighting products, including a line of specialty ballasts ranging from 400 watts to 1,000 watts with various features, its Lamp Products, a line of reflectors, lighting accessories and a line of light emitting diode (LED) lighting technologies.