Data I/O Raises $13.25M in Convertible Debt, Diluting a $27M Market Cap
DAIO sits 24% above its 52-week low of $2.16.
Summary
Data I/O is raising roughly $13.25 million through a private placement of convertible subordinated debentures plus common and preferred shares — a raise equal to about half the company's entire market value, so dilution is severe. The debentures carry a 5% coupon that steps up 1% each year over a five-year term, and $7.25 million of the round converts at $2.68, essentially today's price, with $4.0 million in non-voting preferred converting at the same $2.68. The lead investor from the June 2026 private placement put in another $4.0 million, which is the one genuine vote of confidence here. Because the issuance exceeds 19.9% of shares outstanding, they must hold a special shareholder meeting within 120 days and file an S-1 within 30 days of closing. Context: this comes after Q2 revenue of $5.2 million (up 59% sequentially) but a $0.17 per share loss, an unremediated material weakness in internal controls, and an existing $20 million shelf — the balance sheet is the story, not the growth.
At the time of this announcement, DAIO was trading at $2.68 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.8M. The 52-week trading range was $2.16 to $4.49. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.