Liberty Star Issues $73,700 Convertible Note at 25% Discount to Market
LBSR sits 29% above its 52-week low of $0.017.
Summary
A $73,700 convertible note with a 25% conversion discount adds to a pattern of dilutive financing for the cash-strapped company.
Key Events · Financing and Capital Events · LBSR
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New Convertible Note Issued
A $73,700 convertible promissory note was issued to 1800 Diagonal Lending LLC on August 12, 2026, with an 8% interest rate and 10% original issue discount.
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Deep Conversion Discount
The note converts at 75% of the average of the three lowest closing bid prices over the prior ten trading days, a 25% discount to market.
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Reserve Requirement
The company must reserve 3.5 times the number of shares issuable upon full conversion, creating significant potential dilution.
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Cross-Default Provision
The note cross-defaults with all other existing and future debt to the holder, increasing risk of acceleration.
Analysis · LBSR · Energy & Transportation
A new convertible note with 1800 Diagonal Lending LLC for $73,700, issued August 12, 2026, carries a conversion price set at a 25% discount to the average of the three lowest closing bid prices over the prior ten trading days—a deeply dilutive structure for a company with a market cap of only $2.56 million. The company must reserve 3.5 times the shares needed for full conversion, and the note cross-defaults with all other debt to the holder. This follows two similar convertible notes in the past three months, signaling continued reliance on high-cost, dilutive financing amid severe cash shortages and going concern doubts.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 35.8% of the 1864 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. 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, LBSR was trading at $0.02 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $2.6M. The 52-week trading range was $0.02 to $0.10. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.