Edgemode Secures Highly Dilutive $130K Convertible Note with Deep Discount Conversion

summarizeSummary

Edgemode, Inc. has secured $130,000 in net proceeds through a convertible promissory note with an accredited investor, featuring a conversion price at a significant discount to market, indicating highly dilutive financing.

check_boxKey Events

• Convertible Note Issued

  Edgemode, Inc. received $130,000 in net proceeds from a $150,000 convertible promissory note, after an original issuance discount and legal costs.

• Highly Dilutive Conversion Terms

  The note is convertible into common stock at 60% of the lowest trading price over the 15 trading days prior to conversion, with interest also payable in shares. This discount can increase to 45% upon an event of default.

• Working Capital Use

  The proceeds from the convertible note are designated for general working capital purposes.

• Significant Share Reserve

  The company has reserved 116,822,430 shares of common stock for conversions under this note, highlighting the potential for substantial dilution to existing shareholders.

auto_awesomeAnalysis

Edgemode, Inc. has entered into a highly dilutive financing agreement, securing $130,000 in net proceeds from a $150,000 convertible promissory note. The terms are significantly unfavorable to existing shareholders, as the note converts at a deep discount of 60% to the lowest trading price over a 15-day period, with interest also payable in common stock. This variable conversion price, which can drop to 45% upon an event of default, creates a substantial overhang and potential for significant dilution. While the capital provides working capital, the cost of this financing is very high, indicating the company's challenging position in raising funds.