WYTEC INTERNATIONAL INC (OTC:WYTC) entered into a securities purchase agreement with 1800 Diagonal Lending LLC, which closed on October 15, 2025. Pursuant to the agreement, Wytec sold a promissory note to 1800 Diagonal with a principal amount of $94,300.
The note was purchased for an aggregate of $82,000, which included an original issue discount of $12,300. A one-time interest charge of 12%, totaling $11,316, was applied to the principal amount on the note's issuance date. The note carries a maturity date of August 15, 2026, with payments scheduled to begin on April 15, 2026. Wytec retains the right to prepay the note in full at any time without penalty, and may receive a discount ranging from 2% to 5% on the prepayment amount if settled within 180 days of the issuance date.
In the event of a default, the outstanding principal and accrued unpaid interest will increase by 150%, and the note will accrue interest at an annual rate of 22%. Additionally, 1800 Diagonal will have the option to convert the note into shares of Wytec's common stock at a conversion price equal to 65% of the lowest trading price over the ten trading days prior to the conversion date, provided that 1800 Diagonal and its affiliates do not exceed 4.99% ownership of Wytec's outstanding common stock.
