Edgemode Secures $100K via Toxic Convertible Note with 39% Discount Conversion Feature
EDGM has more than doubled off its 52-week low of $0 on elevated volume (3.0× avg).
Summary
Edgemode raised $100,000 through a convertible note with a 39% discount conversion feature that activates upon default — a toxic financing structure given the company's near-zero cash position and ongoing losses.
Key Events · Financing and Capital Events · EDGM
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Toxic Convertible Note Issued
Edgemode sold a $129,600 promissory note to Vanquish Funding Group Inc. for net proceeds of $100,000. The note includes a 15% upfront interest charge and converts at a 39% discount to the lowest trading price over 20 days, but only upon an event of default.
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Financial Impact
Net proceeds of $100,000 after $8,000 in legal fees paid to the investor. Total payback is $149,040 over four monthly payments starting January 2027. If default occurs, the conversion price could be as low as $0.0021 (61% of $0.0035), implying massive dilution.
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Default Risk and Dilution
With only $35,000 in cash as of mid-May and no revenue, the company is at high risk of default. Any missed payment triggers the right to convert at a steep discount, potentially issuing billions of shares and severely diluting existing holders.
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Timeline and Next Milestones
First payment of $74,520 due January 15, 2027. The note matures April 15, 2027. The company must maintain SEC reporting compliance and avoid cessation of operations to prevent default.
Analysis · EDGM · Industrial Applications And Services
Edgemode, Inc. sold a $129,600 convertible promissory note to Vanquish Funding Group Inc. for net proceeds of just $100,000 — a deeply dilutive financing structure. The note carries a 15% interest charge upfront and, critically, converts at a 39% discount to the lowest trading price over 20 days, but only upon an event of default. With the company's cash position at $35,000 as of mid-May and no revenue, the risk of default is high, which would trigger conversion at deeply discounted prices, potentially flooding the market with shares. The $8,000 in legal fees paid to the investor further reduces the net benefit. This is a last-resort capital raise that signals severe financial distress and sets up significant dilution for existing shareholders if the company stumbles on its payment schedule.
At the time of this filing, EDGM was trading at $0.00 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $12.9M. The 52-week trading range was $0.00 to $0.11. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.