Company: BCG
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001410578-25-000143
Chunk: 210

Company: Binah Capital Group, Inc.
Filing Date: 2025-02-14
Form: S-1
Chunk 210
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 addition to the paydown, the noteholders agreed to forgive the remaining accrued but unpaid interest of approximately $ million and entered into new promissory notes in the principal amount of approximately $ million in the aggregate. The terms of these new promissory notes provide for maturity on May 15, 2027 and carries an interest rate of Prime plus %, but no less than % per annum. Related interest expense was approximately $ and $ for the nine months ended September 30, 2024 and 2023, respectively.

| 8. | DUE TO MEMBERS |

BMS had entered into promissory notes with certain of its members to provide for working capital. As of December 31, 2023, the amount of principal and accrued interest related to these notes were approximately $ million. The notes carried an interest at the rate of % and were due on demand.

In connection with the closing of the Business Combination, the noteholders agreed to satisfy all outstanding obligations, including the payment of principal and interest, in exchange for an amount of cash equal to approximately $ million, forgiveness of certain other obligations owed to a noteholder and the issuance of shares of Common Stock of Binah Capital Group, Inc.

| 9. | SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK |

On March 15, 2024 (the “Funding Date”), in connection with the consummation of the Business Combination, Holdings and BMS entered into a Subscription Agreement with an investor for the purchase of shares of Holdings’ Series A Redeemable Convertible Preferred Stock (the “Holdings Series A Stock”) in a private placement at $ per share, for an aggregate purchase price of $ (the “Series A PIPE”). The Holdings Series A Stock may be converted into shares of Holdings Common Stock after the second anniversary of the closing of the Series A PIPE, which such conversion shall initially be shares of Holdings Common Stock for each share of Series A Convertible Preferred Stock, subject to certain adjustments provided in the Certificate of Designations.

Additionally, the Holdings Series A Stock carries a cumulative dividend at a rate of nine percent (%) per annum, payable and compounded quarterly on the last day of each quarter. At the discretion of Holdings, the payment may be made in cash or up to % of the amount due, in duly authorized, validly issued, fully paid and non-assessable share of Holdings Series A Stock at a value of $ per share. As of September 30, 2024, the Company