Universal Safety Products signs amended loan deal with SJC Lending
Universal Safety Products, Inc. entered into an amended and restated Securities Purchase Agreement with SJC Lending LLC on October 9, 2026. The agreement establishes a facility for convertible promissory notes with an aggregate principal amount of up to $2,650,000, sold for a total purchase price of up to $2.5 million. The deal amends and restates the original Securities Purchase Agreement signed by the two parties on June 12, 2026. Universal Safety Products is a Maryland corporation headquartered in Owings Mills, Maryland, and its common stock trades on the NYSE American under the symbol UUU. The loan is structured in three separate tranche closings, although SJC retains the sole discretion to purchase any principal face amount of the notes prior to those scheduled dates. The initial tranche closed on June 12, 2026, involving the issuance of a note with a principal face amount of $1,060,000 for a purchase price of $1,000,000. The second tranche closed on July 29, 2026, with a note principal face amount of $530,000 for a purchase price of $500,000. The third and final tranche requires SJC to purchase a note with a principal face amount of $1,060,000 for $1,000,000 within thirty days after the Securities and Exchange Commission declares a registration statement effective for the resale of the shares issuable upon conversion. SJC holds an additional investment right allowing it to purchase up to $2,650,000 in additional notes for $2.5 million in cash within three months of the final closing. This right can be exercised repeatedly until SJC has purchased an aggregate of $10,600,000 in notes or elects not to proceed. The convertible notes carry an original issue discount of six percent and accrue interest at 8% per annum, rising to 20% per annum upon an event of default. The notes mature on the first anniversary of their issuance. Conversion into Universal Safety Products common stock is permitted after NYSE American approval of a Supplemental Listing Application. The conversion price is set at the greater of a $1.00 floor price or 80% of the lowest volume-weighted average price of the common stock during the five trading days prior to conversion, capped at $10.00 per share. The agreement includes customary closing conditions and regulatory approvals. Conversion resulting in ownership exceeding 19.99% of the company's common stock is subject to stockholder approval. From June 12, 2026 until one year later or until the notes are no longer outstanding, Universal Safety Products is prohibited from entering into variable rate transactions. SJC also holds a right of first refusal on any future public or private equity or convertible debt offerings by the company for one year from the initial closing date.
Universal Safety Products, Inc. entered into an amended and restated Securities Purchase Agreement with SJC Lending LLC on October 9, 2026. The agreement establishes a facility for convertible promissory notes with an aggregate principal amount of up to $2,650,000, sold for a total purchase price of up to $2.5 million. The deal amends and restates the original Securities Purchase Agreement signed by the two parties on June 12, 2026. Universal Safety Products is a Maryland corporation headquartered in Owings Mills, Maryland, and its common stock trades on the NYSE American under the symbol UUU. The loan is structured in three separate tranche closings, although SJC retains the sole discretion to purchase any principal face amount of the notes prior to those scheduled dates. The initial tranche closed on June 12, 2026, involving the issuance of a note with a principal face amount of $1,060,000 for a purchase price of $1,000,000. The second tranche closed on July 29, 2026, with a note principal face amount of $530,000 for a purchase price of $500,000. The third and final tranche requires SJC to purchase a note with a principal face amount of $1,060,000 for $1,000,000 within thirty days after the Securities and Exchange Commission declares a registration statement effective for the resale of the shares issuable upon conversion. SJC holds an additional investment right allowing it to purchase up to $2,650,000 in additional notes for $2.5 million in cash within three months of the final closing. This right can be exercised repeatedly until SJC has purchased an aggregate of $10,600,000 in notes or elects not to proceed. The convertible notes carry an original issue discount of six percent and accrue interest at 8% per annum, rising to 20% per annum upon an event of default. The notes mature on the first anniversary of their issuance. Conversion into Universal Safety Products common stock is permitted after NYSE American approval of a Supplemental Listing Application. The conversion price is set at the greater of a $1.00 floor price or 80% of the lowest volume-weighted average price of the common stock during the five trading days prior to conversion, capped at $10.00 per share. The agreement includes customary closing conditions and regulatory approvals. Conversion resulting in ownership exceeding 19.99% of the company's common stock is subject to stockholder approval. From June 12, 2026 until one year later or until the notes are no longer outstanding, Universal Safety Products is prohibited from entering into variable rate transactions. SJC also holds a right of first refusal on any future public or private equity or convertible debt offerings by the company for one year from the initial closing date.