FreeCast Discloses $4.69M Insider Convertible Note with 12% Interest
CAST sits 52% above its 52-week low of $1.88 on light trading volume (0.2× avg).
Summary
FreeCast, Inc. updated its revolving convertible promissory note with Nextelligence, Inc., an entity controlled by its CEO, revealing an aggregate outstanding balance of $4.69 million at a 12% interest rate.
Key Events · Financing and Capital Events · CAST
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Updated Financial Obligation
FreeCast, Inc. reported an aggregate outstanding balance of $4,689,052 under a revolving convertible promissory note as of March 23, 2026, following additional draws of $265,000.
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Insider-Controlled Lender
The note is with Nextelligence, Inc., an entity controlled by William A. Mobley, Jr., the company's Chief Executive Officer and Chairman.
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High Interest & Short Maturity
The note carries a 12.0% annual interest rate (escalating to 18.0% on default) and is due by June 30, 2026.
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Convertible Terms
The debt is convertible into Class A common stock at the lender's option, at a conversion price of $8.00 per share, which is significantly above the current market price.
Analysis · CAST · Technology
This 8-K provides an update on a significant financial obligation for FreeCast, Inc. The company has drawn nearly the full $5 million available under a revolving convertible promissory note from Nextelligence, Inc., an entity controlled by its CEO. While securing this capital provides necessary funding, the 12% interest rate (18% on default) and the relatively short maturity date of June 30, 2026, highlight the company's reliance on high-cost, insider financing. The conversion price of $8.00 per share is significantly above the current stock price, which means immediate dilution is not a concern, but the debt itself represents a material obligation that needs to be repaid or converted soon. Investors should monitor the company's ability to manage this debt and its future financing strategies.
At the time of this filing, CAST was trading at $2.86 on NASDAQ in the Technology sector, with a market capitalization of approximately $96.9M. The 52-week trading range was $1.88 to $33.00. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.