By Chris Wack
PARTS iD, the digital commerce platform, has announced two new funding agreements that are set to provide the company with an immediate cash injection of $7 million. As a result, PARTS iD shares saw a 10% increase, reaching 46 cents.
The first agreement involves an investment of $3.75 million from Lind Global Partners II. In addition, Chief Executive Lev Peker and another external investor joined Lind in co-investing an additional $3.25 million. This brings the total funding obtained from this agreement to $7 million.
The capital raised from Lind will be utilized to settle the outstanding debt owed to JGB Capital, as well as for general working capital requirements. The investment from Lind is structured as a senior-secured promissory note with a maturity period of 12 months and carries an annual interest rate of 0%. Furthermore, the note is convertible into shares of PARTS iD’s Class A stock based on Lind’s discretion.
In addition to the funding obtained from Lind, they will also receive warrants to purchase 12.8 million shares of the company’s stock. These warrants can be exercised at a price of 50 cents per share.
Simultaneously, company insiders and an external investor have invested $3.25 million through junior secured promissory notes. Similar to the investment from Lind, these notes can also be converted into shares of PARTS iD stock.
These funding agreements represent a significant milestone for PARTS iD, providing them with the necessary financial resources to address their debt and support their ongoing operations.