Edgemode Secures $1.15M Convertible Note with 200M Commitment Shares

summarizeSummary

Edgemode raised up to $1M via a convertible note from ClearThink Capital, receiving $625K so far, and issued 200M commitment shares. The note converts at a 30% discount to the 10-day low, creating significant dilution risk.

check_boxKey Events · Financing and Capital Events · EDGM

• Convertible Note Financing

  Edgemode entered into a Securities Purchase Agreement with ClearThink Capital Partners for a convertible note with principal up to $1,150,000 and net proceeds up to $1,000,000. The company has received $625,000 in net proceeds to date.

• Commitment Shares Issued

  As additional consideration, Edgemode agreed to issue 200,000,000 restricted shares of common stock to the investor.

• Deeply Discounted Conversion Price

  The note converts at 70% of the lowest closing price over the 10 trading days prior to conversion, a variable discount that could result in massive dilution if the stock price remains low.

• Use of Proceeds

  Proceeds were used to satisfy $328,000 of promissory notes and $225,000 payable to Blackberry AIF under a joint venture agreement.

auto_awesomeAnalysis · EDGM · Industrial Applications And Services

Edgemode entered into a Securities Purchase Agreement with ClearThink Capital Partners for a convertible note with principal up to $1,150,000 and net proceeds up to $1,000,000. The company has received $625,000 so far, which it used to pay off $328,000 in promissory notes and $225,000 owed to Blackberry AIF. As additional consideration, Edgemode agreed to issue 200,000,000 restricted shares to the investor. The note converts at 70% of the lowest closing price over the 10 days prior to conversion, a deeply discounted variable conversion price that could lead to substantial dilution if the stock price remains low. Given the company's going concern warning and cash of only $16,710 as of the last 10-Q, this financing is critical for survival but comes with highly dilutive terms.