LONG TERM DEBT
|9 Months Ended|
Sep. 30, 2022
|LONG TERM DEBT|
|NOTE 8 - LONG TERM DEBT||
NOTE 8 – LONG TERM DEBT
The Company entered into a Loan Agreement on December 24, 2021 with Discover Growth Fund, LLC (“Discover”) pursuant to which the agreed to loan the Company $25,000,000 subject to, among other things, the Company having increased its authorized capital of common shares on or before December 31, 2021, which increase occurred on December 30, 2021.
On January 3, 2022 the Company received $25,000,000 representing a 5% original issue discount of the loan face value of $26,315,790. The Company granted the lender a first-priority security interest in Camber’s common shares of Viking and a first-priority security interest in Camber’s other assets. The notes are convertible into shares of common stock of Camber at a fixed price of $1.50 per share, subject to beneficial ownership limitations. The obligations under the Investor Note are supported by a Guaranty from Viking.
As an incentive to enter into the Note agreement, Camber granted the lender warrants to purchase 25,000,000 shares of Camber common stock at an exercise price of $10.00 and 25,000,000 warrants with an exercise price of $20.00. The warrants expire on December 31, 2026. The Company allocated the net proceeds received of $25,000,000 to the notes and the warrants based on relative fair value and recorded the loan proceeds allocated to the warrants as an additional debt discount of $14,763,393. The fair value of the warrants was determined based on a black-scholes model. Debt discounts on the Note are amortized over the life of the Note using the interest method.
The majority of the Loan Proceeds of the loan were used to: (i) redeem shares of Series C Redeemable Convertible Preferred Stock of the Company not owned by the Investor or its affiliates; and (ii) pay in full the secured loan disclosed by the Company in a Current Report Filed on Form 8-K filed with the SEC on December 17, 2021.
Principal maturities of long-term debt for the next five years and thereafter are as follows:
The above notes were in default at various times, but have been resolved through settlement (see Note 13 Stockholders Deficit)