Edgemode Secures $92K in Highly Dilutive Convertible Note with Punitive Terms
EDGM has more than doubled off its 52-week low of $0.001 on elevated volume (6.1× avg).
Summary
Edgemode, Inc. obtained $92,000 in net proceeds from a convertible promissory note with a $120,000 principal, featuring a deep conversion discount and severe default penalties, signaling significant financial strain.
Key Events · Financing and Capital Events · EDGM
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Secured Convertible Promissory Note
Edgemode, Inc. entered into a securities purchase agreement on March 5, 2026, for a convertible promissory note with a principal amount of $120,000, including a $20,000 Original Issue Discount.
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Net Proceeds and High Cost of Capital
The company received net proceeds of $92,000 after an $8,000 payment for the investor's legal costs. A one-time 15% interest charge was applied, resulting in a total payback of $138,000 by December 15, 2026.
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Highly Dilutive Conversion Terms
The note is convertible into common stock at 61% of the lowest closing price during the 20 trading days prior to conversion, following an event of default. This conversion mechanism is highly dilutive for existing shareholders.
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Punitive Default Penalties
Upon an event of default, the outstanding balance immediately becomes 150% of the principal, plus accrued and unpaid interest, and a 22% annual default interest. Additionally, a $2,000 per day fee is imposed if conversion shares are not delivered by the deadline.
Analysis · EDGM · Industrial Applications And Services
Edgemode, a micro-cap company, has secured additional working capital through a convertible promissory note with extremely unfavorable terms. The effective cost of capital is very high, with $92,000 in net proceeds requiring a $138,000 payback by December 2026, plus a $20,000 original issue discount. The conversion feature, triggered upon default, allows the investor to convert at a deep discount (61% of the lowest closing price over 20 days), which is highly dilutive for existing shareholders and creates a 'death spiral' risk. The punitive default penalties, including a 150% increase in principal and a $2,000 daily 'Fail to Deliver Fee,' highlight the company's distressed financial position and reliance on costly financing. This follows a similar convertible note just days prior, indicating an ongoing pattern of seeking capital under adverse conditions.
How filings like this one have moved
In the 30 days to Sep 16, 2026, 35.8% of the 1190 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.45%. 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, EDGM was trading at $0.01 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $27.9M. 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.