KIDZ AI Issues $1.9M Senior Secured Convertible Note with Market-Price Reset Feature
KIDZ is trading near its 52-week low of $2.71 (11% above the low).
Summary
KIDZ AI issued a $1.9 million senior secured convertible note to Solana Growth Ventures with a $3.672 initial conversion price that can reset to market, plus a $3 million minimum cash covenant.
Key Events · Financing and Capital Events · KIDZ
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$1.9M Convertible Note Issued
KIDZ AI completed an additional closing under its May 2025 Securities Purchase Agreement, issuing a $1,900,000 senior secured convertible note to Solana Growth Ventures LLC.
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Conversion Price Can Reset to Market
Initial conversion price is $3.672 per share, but resets to the lower of $3.672 or Market Price (95% of lowest VWAP over 6 trading days) if market cap falls below $50M or collateral value drops below 200% of principal — conditions already triggered at the current ~$2.7M market cap.
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Floor Price Ratchets Lower
The note includes a $0.612 floor price that automatically adjusts downward every six months to 20% of recent closing prices, creating potential for significant additional dilution.
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$3M Minimum Cash Covenant
The company must maintain at least $3,000,000 in available cash, U.S. treasuries, or stablecoins until 48 months from the initial closing date or until all Additional Notes and Series C Preferred are no longer outstanding.
Analysis · KIDZ · Trade & Services
KIDZ AI closed an additional $1.9 million senior secured convertible note with Solana Growth Ventures under its existing May 2025 purchase agreement. The note carries a 7% coupon and converts at $3.672 per share, but the conversion price can reset to 95% of the lowest VWAP over six trading days if the company's market cap falls below $50 million or collateral value drops below 200% of principal — conditions that are already met given the company's roughly $2.7 million market cap. The note also includes a $0.612 floor price that automatically ratchets lower every six months, a 4.99% ownership blocker, and a covenant requiring $3 million in available cash for up to 48 months. For a company with a market cap under $3 million, this financing is highly dilutive on conversion and imposes significant cash constraints, but it also provides near-term liquidity.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 34.7% of the 1013 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.50%. 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, KIDZ was trading at $3.01 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.7M. The 52-week trading range was $2.71 to $11,100.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.