Newton Golf Company, Inc. has entered a $5.0 million senior secured revolving credit facility (Revolver) and completed the exchange of approximately $2.3 million of outstanding convertible promissory notes, including accrued interest, for Series A Convertible Preferred Stock.
The golf equipment company said the Revolver provides for borrowings of up to $5.0 million, subject to the terms and conditions of the loan agreement and matures on July 1, 2028. Proceeds from the credit facility are expected to be used for working capital, capital expenditures, growth initiatives, and other general corporate purposes.
“Under the exchange agreements, holders of outstanding convertible promissory notes exchanged approximately $2.3 million of notes, including accrued interest, for an aggregate of 24,092.61 shares of Series A Convertible Preferred Stock,” the company explained in a media release.
The Series A Preferred Stock is reportedly convertible into common stock at an initial conversion price of $1.00 per share, subject to the terms and limitations set forth in the certificate of designation. The company said the exchange reduces outstanding indebtedness and further strengthens the company’s balance sheet through the conversion of debt into equity.
“These transactions are an important step in strengthening Newton Golf’s financial position and supporting our continued execution,” said Akinobu Yorihiro, interim CEO and chief technology officer, Newton Golf. “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 as we continue increasing market awareness and adoption for our Newton Motion shafts.”
The company recently reported record 2025 net sales growth of 136 percent year-over-year (see below), appointed Gregg Hemphill to its Board of Directors, completed an exclusive distribution agreement with Voice Caddie in South Korea, and began structured product testing and evaluation programs with leading global golf equipment manufacturers.
Newton Golf Company said it expects the financing transactions to materially improve stockholders’ equity and support its ongoing efforts to satisfy Nasdaq’s minimum stockholders’ equity requirement. Management believes these financing transactions, together with the company’s product platform expansion, international distribution growth, ongoing OEM evaluation programs and strengthening brand equity, support the company’s long-term growth strategy and path toward regaining compliance within the Nasdaq review period.
Image courtesy Newton Golf Company
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See below for additional Newton Golf coverage from SGB Media.
Newton Golf Company Receives Non-Compliance Notice from Nasdaq as Stockholder Equity Shrinks
