Newton Golf secures $5M credit line, converts $2.3M in notes to equity

Newton Golf Company, Inc. (NASDAQ: NWTG) has entered into a $5.0 million senior secured revolving credit facility and completed the exchange of approximately $2.3 million in outstanding convertible promissory notes, including accrued interest, for Series A Convertible Preferred Stock.

The revolving credit facility allows borrowings of up to $5.0 million and matures on July 1, 2028. The company said proceeds will be used for working capital, capital expenditures, growth initiatives, and general corporate purposes.

Under the exchange agreements, note holders received an aggregate of 24,092.61 shares of Series A Convertible Preferred Stock. The preferred stock is convertible into common stock at an initial conversion price of $1.00 per share.

"The exchange of convertible notes into Series A Preferred Stock helps reduce outstanding debt and improves our capital structure, while the revolving credit facility provides access to greater financial flexibility," said Akinobu Yorihiro, Interim Chief Executive Officer and Chief Technology Officer of Newton Golf.

The company said it expects the transactions to materially improve stockholders' equity and support its efforts to satisfy Nasdaq's minimum stockholders' equity requirement.

Additional details are included in the company's Current Reports on Form 8-K filed with the Securities and Exchange Commission.

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