DATA I/O Details $9M Private Placement Terms, Including Convertible Debentures and Warrants
DAIO sits 44% above its 52-week low of $2.16.
Summary
DATA I/O formally disclosed the detailed terms of its $9 million private placement, which includes common stock, convertible debentures, and warrants with conversion prices at a discount to the current market price, representing significant potential dilution.
Key Events · Financing and Capital Events · DAIO
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$9 Million Private Placement Details
The company entered a Securities Purchase Agreement for $9 million, consisting of 869,840 common shares, $6.83 million in convertible debentures, and warrants for 1.08 million shares.
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Dilutive Conversion Terms
The convertible debentures can convert into preferred stock, which is then convertible into common stock at an initial price of $2.50 per share. Warrants are exercisable at $3.00 per share, both at or below the current stock price of $3.10.
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Significant Potential Dilution
The transaction, if fully converted and approved by shareholders, could result in the issuance of approximately 4.68 million new common shares, representing a substantial portion of the company's current market capitalization.
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Shareholder Approval Required
Full conversion of the securities is subject to shareholder approval, as the aggregate number of shares issued without such approval is capped at 1,869,470.
Analysis · DAIO · Industrial Applications And Services
This 8-K provides the specific terms of the $9 million private placement with institutional investors, an event previously announced on May 15th and further detailed in a May 18th PRE 14A. The financing, crucial for working capital and a recent acquisition, involves common stock, convertible debentures, and warrants. The conversion price for preferred stock is $2.50 per share, and warrants are exercisable at $3.00 per share, both at or below the current market price of $3.10. This highly dilutive transaction, representing over 30% of the company's market capitalization, requires shareholder approval for full conversion, as highlighted in the recent PRE 14A.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. 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, DAIO was trading at $3.10 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $29.1M. The 52-week trading range was $2.16 to $3.57. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.