CID Holdco Secures $210K Net Cash from Highly Dilutive Convertible Note with 20% OID and Variable Conversion

summarizeSummary

CID Holdco, Inc. completed the first closing of a senior secured convertible promissory note, receiving $210,000 net cash after a 20% original issue discount, with proceeds earmarked for existing debt payments.

check_boxKey Events

• First Closing of Convertible Note

  CID Holdco completed the first closing of a Senior Secured Convertible Promissory Note with White Lion Capital, LLC, dated April 17, 2026, as part of a previously announced financing package.

• Dilutive Financing Terms

  The note has an original principal amount of $287,500 but yielded only $210,000 in net cash after a 20% original issue discount and $20,000 in legal fee withholdings.

• Variable Conversion Price

  The note is convertible at 80% of the lowest daily volume-weighted average price over a 15-day period, with a default conversion price of $0.01 per share upon an event of default, indicating significant potential dilution.

• Debt Servicing

  Proceeds from the note are required to be used for scheduled monthly payments on a pre-existing senior secured convertible note to J.J. Astor & Co., underscoring the company's financial strain.

auto_awesomeAnalysis

This 8-K details the first closing of a highly dilutive financing arrangement with White Lion Capital, previously announced as part of a larger package. The company issued a $287,500 principal convertible note, but only received $210,000 in net cash due to a 20% original issue discount and legal fee withholdings. The note's conversion terms, tied to 80% of the lowest daily volume-weighted average price over 15 days and a $0.01 default conversion price, are extremely unfavorable and indicate significant future dilution for existing shareholders. The use of proceeds to service existing senior debt highlights the company's ongoing financial distress and reliance on costly, dilutive capital to maintain operations.