Fathom Slashes Note Conversion Price to $0.65, Extends Maturity as NXH Merger Terminates
FTHM is trading near its 52-week low of $0.21 (8.0% above the low) on elevated volume (3.4× avg).
Summary
Fathom Holdings amended its convertible notes, cutting the conversion price from $4.25 to $0.65 and raising interest to 18%, while mutually terminating its merger with Neighborhood Intelligence.
Key Events · Financing and Capital Events · FTHM
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Note Conversion Price Slashed to $0.65
Second Omnibus Amendment dated October 1, 2026 reduces the conversion price of the senior secured convertible notes from $4.25 to $0.65 per share, a roughly 85% reduction.
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Maturity Extended, Interest Rate Jumps to 18%
Maturity date extended from October 1, 2026 to November 1, 2026, with interest accruing at 18% per annum from October 1, 2026 until all obligations are paid in full.
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Exchange Cap Limits Issuance to 19.99%
The company may not issue shares under the notes exceeding 19.99% of issued and outstanding common stock as of October 1, 2026, capping potential dilution from conversions.
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NXH Merger Terminated, No Termination Fee
Fathom and Neighborhood Intelligence mutually terminated their merger agreement on October 5, 2026, with no termination fee payable by either party. The Bridge Note maturity remains April 1, 2027.
Analysis · FTHM · Real Estate & Construction
Fathom Holdings amended its senior secured convertible notes on October 1, 2026, cutting the conversion price from $4.25 to $0.65 per share and extending the maturity date by one month to November 1, 2026. The interest rate jumps to 18% per annum. This is a distressed-debt restructuring: the lower conversion price means noteholders can convert into far more shares, and the 19.99% exchange cap limits issuance to roughly one-fifth of the company's outstanding stock. The amendment comes as Fathom and Neighborhood Intelligence mutually terminated their merger agreement on October 5, 2026, leaving Fathom to repay or refinance its notes independently. With the stock trading at $0.2268, the $0.65 conversion price is still well above market, but the amendment signals the company is buying time and conceding terms to avoid default.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. 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, FTHM was trading at $0.23 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $7.7M. The 52-week trading range was $0.21 to $1.92. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.