Eva Live to Issue 8.38M Shares from $7M Convertible Note, Addressing Going Concern with Significant Dilution
Summary
Eva Live Inc. filed a prospectus supplement for the potential issuance of up to 8.38 million shares of common stock upon conversion of a $7.56 million secured convertible note, from which the company received $7 million in gross proceeds.
Key Events
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Capital Raise Details
Eva Live Inc. received $7 million in gross proceeds from a secured convertible note with a principal amount of $7.56 million, entered into on February 23, 2026, with Streeterville Capital, LLC.
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Potential Share Issuance
The company is registering up to 8,381,375 shares of common stock issuable upon conversion of this note, under the S-3 shelf registration filed on March 18, 2026.
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Significant Dilution
This potential issuance represents approximately 26.74% dilution to existing shareholders, based on 31,342,285 shares outstanding as of December 31, 2025.
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Discounted Conversion Price
The assumed conversion price is $3.069 per share, which is 87% of the lowest daily VWAP for the ten trading days prior to the measurement date, indicating a discount to market.
Analysis
This 424B5 filing details a significant financing event for Eva Live Inc., following its recent S-3 shelf registration. The company has secured $7 million in gross proceeds through a secured convertible note, which is a critical step given the "going concern" warning in its latest 10-K. While this capital infusion is essential for extending the company's operational runway, it comes at a substantial cost to existing shareholders. The potential issuance of over 8.38 million shares upon conversion of the note represents approximately 26.74% dilution, and the conversion price is set at a discount to the market. Investors should weigh the immediate benefit of improved liquidity and reduced bankruptcy risk against the significant dilutive impact on their ownership.
At the time of this filing, GOAI was trading at $3.93 on NASDAQ in the Technology sector, with a market capitalization of approximately $123.7M. The 52-week trading range was $1.32 to $48.16. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.