Eva Live's $2M Convertible Note Could Dilute Existing Holders by 12.5%
GOAI sits 47% above its 52-week low of $1.323.
Summary
Eva Live filed a prospectus for up to 4.58 million shares underlying a $2.16 million convertible note with Streeterville Capital. The variable conversion price — 87% of the lowest 10-day VWAP — means dilution could exceed 12.5% and increase if the stock declines.
Key Events · Financing and Capital Events · GOAI
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$2M Convertible Note with Variable Pricing
Eva Live entered a securities purchase agreement with Streeterville Capital for a $2.16 million secured convertible note, receiving $2 million in gross proceeds. The note converts at 87% of the lowest 10-day VWAP, a variable rate that increases dilution as the stock price falls.
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Potential 12.5%+ Dilution
At the July 21 conversion price of $2.086, full conversion would issue up to 4,576,272 shares, diluting existing shareholders by approximately 12.5% based on 36.5 million shares outstanding as of March 31, 2026. The actual dilution could be higher if the stock price declines.
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Immediate Dilution of $1.65 Per Share
New investors at the assumed conversion price would experience immediate dilution of $1.65 per share, as the pro forma net tangible book value per share after the offering is $0.44 versus the $2.086 conversion price.
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Going Concern and Financing Dependency
The company has a going concern warning and material weaknesses in internal controls. It has been relying on highly dilutive financing, including an existing ATM program and multiple convertible notes, to fund operations.
Analysis · GOAI · Technology
Eva Live is issuing a $2.16 million convertible note to Streeterville Capital for $2 million in gross proceeds. The note converts at a variable price — 87% of the lowest 10-day VWAP — which was $2.086 on July 21, 2026. At that price, full conversion would add up to 4.58 million shares, representing roughly 12.5% dilution to the 36.5 million shares outstanding as of March 31, 2026. The variable conversion rate means dilution could be significantly higher if the stock price falls. This financing comes amid a going concern warning, material weaknesses, and heavy reliance on dilutive funding, making the terms particularly punitive for existing shareholders.
At the time of this filing, GOAI was trading at $1.95 on NASDAQ in the Technology sector, with a market capitalization of approximately $72M. The 52-week trading range was $1.32 to $18.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.