First Breach Converts $23.3M of Toxic Convertible Notes into 2.95M Shares at $8.00
FBDT is trading near its 52-week low of $0.652 (7.4% above the low).
Summary
First Breach's Nasdaq listing triggered the automatic conversion of $23.3M in secured convertible notes into 2.95M shares at $8.00 per share, extinguishing the debt but diluting existing holders. The filing also confirms 887,472 advisory shares issued to RBW Capital Partners.
Key Events · Financing and Capital Events · FBDT
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Convertible Notes Converted
On August 20, 2026, $15,615,385 of April 2026 notes plus $302,896 accrued interest converted into 1,989,784 shares at $8.00 per share, and $7,692,308 of May 2026 notes converted into 961,539 shares at $8.00 per share.
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Dilution Impact
The conversion added approximately 2.95 million shares to the outstanding count, representing roughly 5.3% of the 55.8 million shares outstanding as of August 28, 2026.
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Advisory Shares Issued
The company issued 887,472 shares to RBW Capital Partners and paid a $250,000 cash advisory fee upon the Nasdaq listing.
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Going Concern Warning
The attached Q2 10-Q reiterates substantial doubt about the company's ability to continue as a going concern, with a $28.5M net loss for the six months ended June 30, 2026.
Analysis · FBDT · Manufacturing
This prospectus supplement reveals that on August 20, 2026, the company's Nasdaq listing triggered the automatic conversion of $23.3 million in secured convertible notes into 2.95 million shares at $8.00 per share. The notes carried a 35% original issue discount, meaning the company received only $15.15 million in cash for $23.3 million of debt. The conversion extinguishes the debt but creates immediate dilution for existing shareholders. The filing also confirms the issuance of 887,472 advisory shares to RBW Capital Partners plus a $250,000 cash fee. Against the backdrop of a going concern warning and material weaknesses disclosed in the attached Q2 10-Q, this conversion removes a major debt overhang but at the cost of significant shareholder dilution.
How filings like this one have moved
In the 30 days to Sep 13, 2026, 35.6% of the 1216 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. 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, FBDT was trading at $0.70 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $31.8M. The 52-week trading range was $0.65 to $12.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.