Clean Energy Technologies takes subordinated loan from Agile Capital Funding
What's the deal? Clean Energy TechnologiesDealroom has a profile for this one. Try Dealroom →, Inc. (CETY), a Nasdaq-listed company, entered a subordinated business loan and security agreement with Agile Capital Funding, LLC on May 27, 2026. The loan totals roughly $260,000, but after fees and deductions — including a $10,000 administrative fee — CETY nets just $24,546.64 in proceeds.
The total interest charge on the loan is $129,740, assuming timely payments. That's nearly half the loan's face value.
The agreement was signed by CETY chief executive officer Kambiz Mahdi and Aaron Greenblott for Agile Capital Funding. The loan is secured by substantially all of CETY's assets, including accounts receivable, inventory, equipment, and intellectual property.
Why now? The deal appears driven by an urgent need for liquidity. The fact that CETY is borrowing at such a high effective cost suggests it has limited access to cheaper capital. The loan could be earmarked for working capital, operations, or other near-term corporate needs.
What could go wrong? Plenty. The loan's terms carry significant risks for CETY on multiple fronts.
First, the cost of capital is extraordinarily high. Paying $129,740 in interest on a $260,000 loan signals either a distressed borrower or a lender pricing in substantial risk — likely both.
Second, by pledging nearly all its assets as collateral, CETY limits its ability to raise additional secured debt. If the company hits further liquidity trouble, it will have fewer options. A default would let Agile Capital seize and liquidate those assets to recover its money.
The agreement also imposes restrictive covenants: limits on dividends, related-party transactions, and new debt beyond permitted levels. Management's flexibility in capital allocation shrinks considerably. CETY must maintain good standing, file taxes on time, deliver financial statements promptly, and allow lender audits up to twice a year — or more if in default.
The signal: Dealroom classifies Clean Energy Technologies as an "early growth" stage company, yet resorting to a subordinated loan that yields barely $25,000 in net proceeds — while surrendering a security interest in virtually all corporate assets — is a financing pattern more commonly associated with distressed micro-caps than businesses on a genuine growth trajectory. The gulf between that classification and the reality of CETY's capital access underscores how thin the line between early growth and survival mode can be for small public cleantech companies.
Read more: minichart.com.sg
