Xiao-I Secures $4M Through Highly Dilutive Convertible Note with Variable Conversion Price
AIXI has more than doubled off its 52-week low of $0.4 on elevated volume (44× avg).
Summary
Xiao-I Corp raised $4.0 million through a convertible note with Streeterville Capital, carrying a variable conversion price at a 10% discount to the lowest recent VWAP. The deal is highly dilutive and follows two similar financings in the past four months.
Key Events · Financing and Capital Events · AIXI
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New $4.33M Convertible Note
A Securities Purchase Agreement with Streeterville Capital was entered into by Xiao-I for a $4,330,000 convertible note, receiving $4,000,000 in cash after a $320,000 original issue discount and $10,000 in transaction expenses.
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Variable Conversion Price
The note converts at 90% of the lowest daily VWAP over the 10 trading days before conversion, minus $0.05 per ADS. The lower the stock price, the more shares are issued upon conversion.
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Third Streeterville Financing in 4 Months
This follows a $3.0M note in April 2026 and a $2.0M note in June 2026, both with the same lender and similar variable conversion terms.
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Nasdaq Deficiency Notice
On August 6, 2026, Xiao-I received a Nasdaq notice for failing to maintain the $15 million minimum market value of publicly held shares, with a compliance deadline of February 1, 2027.
Analysis · AIXI · Technology
A new $4.33 million convertible note financing with Streeterville Capital has been entered into by Xiao-I Corp, providing $4.0 million in cash. The note converts at 90% of the lowest daily VWAP over the prior 10 trading days, minus $0.05 — a variable conversion price that becomes more dilutive as the stock price falls. This marks the third Streeterville financing in four months, following $3.0M in April and $2.0M in June, and comes just weeks after a Nasdaq deficiency notice for failing to maintain the $15 million minimum market value of publicly held shares. The company is also planning a 1-for-7 reverse ADS split effective September 8, 2026, which will not change the underlying dilution economics but will reduce the number of ADSs outstanding. The financing provides working capital but at the cost of substantial potential dilution to existing shareholders, with the conversion price tied to depressed market prices.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 41.1% of the 372 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, AIXI was trading at $1.06 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2M. The 52-week trading range was $0.40 to $54.20. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.