ChronoScale Corp (CHRN): Entry into a Material Definitive Agreement
ChronoScale Corp (CHRN) filed an SEC Form 8-K — Entry into a Material Definitive Agreement. EX-4.1 2 ex4-1.htm EX-4.1 Exhibit 4.1 DEMAND GRID PROMISSORY NOTE June 26, 2026 (the “ Effective Date ”) FOR VALUE RECEIVED, the undersigned, ChronoScale Corporation (NASDAQ: CHRN) (the “ Borrower ”), hereby unconditionally promises to pay to the order of Applied Digital Corporat
How this was made
The 30-second read
Why it matters
The note sets a maximum aggregate advances outstanding of $100M minus lender-determined deductions, with interest tied to the short-term Applicable Federal Rate and repayment on lender demand.
Market read
This is a capital-structure update for CHRN: it discloses the debt instrument mechanics (demand repayment, interest, and advance cap), which can affect liquidity expectations and risk premium.
What to watch
Traders should focus on whether CHRN actually requests advances under the grid and how the $100M cap is reduced by lender-supported affiliate liabilities/reserves, which can materially constrain usable liquidity.
Background
The filing is an SEC 8-K reporting entry into a material definitive agreement, specifically a demand grid promissory note.
Ticker impact
ChronoScale entered a demand grid promissory note with Applied Digital, creating a $100M cap and lender-demand repayment terms.
Near-term volatility possible around funding/draw expectations; direction depends on whether advances are actually requested and on credit terms.
The 8-K discloses the debt instrument’s key mechanics (demand, interest, $100M cap), but does not state the amount drawn or immediate cash proceeds.
Market effects
Adds another example of non-traditional financing/demand-debt structures in the broader digital infrastructure/compute financing ecosystem.
Limited; primarily affects US-listed CHRN and its capital structure.
Low; no cross-border operational or regulatory linkage is described.
Counterpoint
Because advances are optional for the lender and repayment is on demand, the agreement may be more of a contingent liquidity backstop than an immediate funding event.
Key entities
- issuerChronoScale Corporation
Borrower that entered the demand grid promissory note agreement.
- lenderApplied Digital Corporation
Lender authorized to make advances and to demand repayment under the note.
