C2 Blockchain Issues Massively Dilutive Preferred Stock to CEO, Sells Common Shares at Deep Discount

summarizeSummary

C2 Blockchain, Inc. issued 4.5 million Series A Preferred Shares to its sole officer and director, potentially diluting common shareholders by nearly 100%, and simultaneously sold 3 million common shares at a significant discount to an accredited investor for $30,000.

check_boxKey Events

• Massive Preferred Stock Issuance to CEO

  The company's Board approved the issuance of 4,500,000 shares of Series A Preferred Stock to Levi Jacobson, the sole officer and director. Each preferred share carries 100 votes and is convertible into 100 common shares.

• Significant Potential Dilution

  If all Series A Preferred Shares issued to the CEO were converted, it would result in 450,000,000 additional common shares, representing a potential dilution of nearly 100% for existing common shareholders.

• Deeply Discounted Common Stock Sale

  C2 Blockchain sold 3,000,000 shares of common stock to an accredited investor at a price of $0.01 per share, generating gross proceeds of $30,000. This price is an 87.5% discount to the current stock price.

• Consolidation of Control

  The issuance of Series A Preferred Stock to the sole officer and director significantly concentrates voting power, as each preferred share carries 100 votes.

auto_awesomeAnalysis

This filing reveals two significant capital events for C2 Blockchain, Inc., both highly unfavorable for existing common shareholders. The issuance of 4.5 million Series A Preferred Shares to the sole officer and director, Levi Jacobson, is particularly impactful. Each preferred share carries 100 votes and is convertible into 100 common shares, representing a potential dilution of nearly 100% for existing common shareholders if fully converted. This move also significantly consolidates voting control in the hands of the CEO. Concurrently, the company raised a modest $30,000 by selling 3 million common shares at a deep discount of $0.01 per share, significantly below the current market price. These actions follow a recent charter amendment on March 5, 2026, which authorized a massive increase in stock, and occur against a backdrop of the company's previously disclosed 'going concern' warning from its February 20, 2026 10-Q filing. The terms of these capital raises underscore the company's distressed financial position and its reliance on highly dilutive measures to secure funding and maintain operations.