8-K: IIOT-OXYS Secures $43,000 in Preferred Equity Financing from GHS Investments

IIOT-OXYS, Inc. has entered into a Securities Purchase Agreement with GHS Investments, LLC, resulting in the sale of 47 shares of Series B Convertible Preferred Stock for $43,000.

Summary

• IIOT-OXYS, Inc. entered into a Securities Purchase Agreement with GHS Investments, LLC on October 3, 2024.
• GHS Investments purchased 47 shares of Series B Convertible Preferred Stock.
• Four of the shares were designated as commitment shares.
• The stated value of each share was $1,200, but the purchase price was $1,000 per share.
• The total purchase price was $43,000.
• The sale of the preferred stock was exempt under Rule 506(b) of Regulation D.
• Selling commissions of $860 were paid to J.H. Darbie & Co.

Sentiment

Score: 7

Explanation: The document indicates a positive development for the company, securing necessary funding, but the amount is relatively small, suggesting a neutral to slightly positive sentiment.

Positives

• IIOT-OXYS, Inc. successfully raised $43,000 in funding.
• The company secured investment from an accredited investor, GHS Investments, LLC.
• The transaction was completed under an exemption, simplifying the process.

Industry Context

This type of financing is common for early-stage companies seeking capital, and the use of preferred stock is a typical method to attract investors.

Comparison to Industry Standards

• The use of preferred stock for financing is a standard practice for companies at this stage, similar to other tech startups seeking growth capital.
• The valuation of $1,000 per share compared to a stated value of $1,200 is not uncommon in private placements, reflecting a discount for early investors.
• The transaction size of $43,000 is relatively small, suggesting this is likely a seed or early-stage funding round, similar to other companies in the IIOT space.

Stakeholder Impact

• The capital raise is a positive development for shareholders as it provides additional funding for the company.
• The funding may enable the company to pursue its business objectives and potentially increase its value.

Key Dates

Keywords

Preferred Stock, Equity Financing, Securities Purchase Agreement, GHS Investments, Convertible Preferred Stock, Rule 506(b), Accredited Investor