CDT Equity's $6.75M Convertible Note Carries Coercive Reverse Split Provisions
CDT is trading near its 52-week low of $0.631 (0.5% below the low) on elevated volume (1.8× avg).
Summary
A $6.75M convertible note was issued by CDT Equity to J.J. Astor with a $0.18354 floor price and mandatory reverse split provisions to maintain Nasdaq listing. The financing provides near-term cash but imposes coercive terms that could massively dilute existing shareholders.
Key Events · Financing and Capital Events · CDT
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$6.75M Convertible Note Issued
On October 6, 2026, a $6.75M senior secured convertible note was issued to J.J. Astor & Co., with $3M received in the first tranche and net proceeds of $2.87M after fees. A second $2M tranche is contingent on stockholder approval and a $3.00 minimum bid price by December 31, 2026.
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Floor Price Reset to $0.18354
The conversion floor price for both the new note and the existing $2.4M note was reset to $0.18354—just 20% of the October 5 closing price of $0.9177. Every six months, the floor resets to 20% of the lowest closing price, and it automatically drops to any lower issuance price.
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Mandatory Reverse Split Provisions
Reverse stock splits are required by the note to maintain Nasdaq's $1.00 minimum bid price, with authority up to 1-for-1,000. Failure to comply constitutes an immediate event of default. Stockholder approval must be obtained by November 13, 2026.
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ATM Proceeds Redirected
80% of net proceeds from the existing ATM program with A.G.P. are now applied first to this new note before the existing note. ATM sales cannot be suspended or reduced without lender consent, and failure to maintain the ATM constitutes an event of default.
Analysis · CDT · Life Sciences
A $6.75 million senior secured convertible note with J.J. Astor & Co. has been entered into by CDT Equity, with $3 million received upfront and a second $2 million tranche contingent on stockholder approval and a $3.00 minimum bid price. The note's conversion floor price of $0.18354—just 20% of the October 5 closing price—combined with mandatory reverse stock split provisions forces the company to maintain Nasdaq's $1.00 minimum bid price or face immediate default. With the stock trading at $0.628 and the company already under a going concern warning with only $747K in cash, this financing extends the runway but at severe cost: the lender can convert at deeply discounted prices, and 80% of ATM proceeds are now redirected to this new note before the existing $2.4M note is paid. A stockholder meeting must also be convened by November 13, 2026 to approve the conversion shares and additional reverse split authority up to 1-for-1,000.
How filings like this one have moved
In the 30 days to Oct 13, 2026, 44.4% of the 297 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.63%. 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, CDT was trading at $0.63 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $742.2K. The 52-week trading range was $0.63 to $28,390.00. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.