AppTech Payments Raises $950,000 Through High-Interest Convertible Notes
The Carlsbad-based fintech issued 18% promissory notes to two investors alongside warrants for one million shares of common stock.
April 10, 2026
AppTech Payments Corp., a Delaware-incorporated fintech company trading on the OTCQB under the ticker APCX, disclosed on April 10, 2026, that it has entered into securities purchase agreements with two investors — LendSpark Corporation and Manetto Hill Fund Series I, LLC — for the issuance of $1 million in aggregate principal amount of promissory notes carrying an 18% annual interest rate.
Each investor purchased a $500,000 note at a discounted price of $475,000, reflecting an original issue discount of $25,000 per note. The notes, issued on April 3, 2026, mature 14 months from the issue date and begin amortizing with scheduled cash payments starting May 4, 2026.
Conversion and Default Terms
The notes are convertible at each investor’s option into shares of AppTech common stock at a fixed conversion price of $2.00 per share, subject to a beneficial ownership cap of 4.99%. In the event of a default — including missed payments, failure to deliver conversion shares, or insolvency events — the outstanding balance may become immediately due at 125% of principal and accrued interest, and alternative conversion pricing may apply.
Warrants and Guaranty
Alongside the notes, each investor received a warrant to purchase 500,000 shares of common stock at an exercise price of $1.00 per share, bringing the total warrant coverage to one million shares. The warrants expire five years from issuance and include cashless exercise provisions and anti-dilution protections.
As additional security, AppTech’s wholly-owned subsidiary, Infinitus Pay Inc., entered into a guaranty agreement in favor of both investors, guaranteeing the company’s obligations under the notes upon an event of default and granting a security interest in certain collateral. HCC Securities Group, a registered broker-dealer, served as placement agent for the transaction.
The securities were offered under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D and have not been registered. The disclosure was signed by CEO Thomas DeRosa.
