ConnectM issues new $1.39M convertible note in Ascent Partners deal
What's the deal? ConnectM Technology Solutions issued a new Senior Secured Convertible Promissory Note worth $1,388,888.89 in principal to Ascent Partners FundDealroom has a profile for this one. Try Dealroom →, the company disclosed in an October 2, 2026 filing. The note was purchased for $1,250,000, reflecting an original issue discount of $138,888.89.
The terms: The note carries 10% annual interest with one year guaranteed, maturing on September 28, 2027. Before a Listing Event, it converts into common stock at the lower of $4.5885 or, in a default, 95% of the lowest five-day VWAP, capped at 9.99% ownership.
Why now? The issuance came through Amendment No. 1 to a Securities Purchase Agreement the two parties signed on August 31, 2026. The amendment removed the lender's right of first refusal and most-favoured-terms provisions upon a Listing Event, replacing both with "Reserved."
ConnectM also amended two earlier convertible notes, dated August 31 and September 4, to require payment of 105% of outstanding principal plus accrued interest on the Listing Event date.
What's the endgame? Ascent Partners signed a side letter committing to buy common stock or units in a future Listing Event Offering, contingent on no default and an effective registration statement. Upon that event, ConnectM must repay the holder 105% of outstanding principal plus accrued interest.
Monthly principal amortisation begins on the earlier of the Listing Event or when Blue Cloud Shares become freely tradable — no later than February 28, 2027. Subject to conditions, those payments may be made in common stock.
The signal: The securities were offered privately under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, with the purchaser confirming accredited investor status. At roughly $1.39 million, the raise sits in the lower tier of disclosed rounds, and the deal's structure — tied to a pending listing and an original issue discount — points to a company financing its path toward public markets rather than a conventional equity round.
Read more: kalkinemedia.com
Image credit: ConnectM Technology Solutions
