Oncotelic Adds $178K Convertible Note with Pacific Pier, Deepening a Distress-Financing Pattern
OTLC has more than doubled off its 52-week low of $0.015.
Summary
Oncotelic Therapeutics obtained a $178,410 convertible note from Pacific Pier Capital II, LP with a floating conversion price tied to 85% of the lowest traded price, adding to a pattern of distress financing amid a going-concern warning.
Key Events · Financing and Capital Events · OTLC
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New Convertible Note with Pacific Pier
On August 3, 2026, Oncotelic issued a $178,410 convertible note to Pacific Pier Capital II, LP, with a 12% original issue discount, 12% annual interest, and a 1-year maturity.
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Deeply Dilutive Conversion Terms
The note converts at the lesser of $0.06 or 85% of the lowest traded price during the 10 trading days prior to conversion. At the current $0.0354 stock price, the effective conversion price could be as low as $0.0301, enabling massive dilution.
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Commitment Shares Issued
Pacific Pier received 500,000 shares of common stock as commitment shares, representing immediate dilution of approximately 0.11% of outstanding shares.
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Escalating Distress Financing Pattern
This is the second convertible note with Pacific Pier in five weeks, following a $157,000 note in June 2026. The company also has a going-concern warning and debt default from its May 2026 10-Q, indicating severe cash constraints.
Analysis · OTLC · Life Sciences
Just over a month after a similar $157,000 convertible note, Oncotelic Therapeutics has entered into a new $178,410 convertible note with Pacific Pier Capital II, LP. The instrument carries a 12% original issue discount, 12% interest, and converts at the lesser of $0.06 or 85% of the lowest traded price over 10 days — a deeply dilutive structure. With the stock at $0.0354, the floating conversion floor is effectively uncapped, threatening massive dilution. The company also issued 500,000 commitment shares. This follows a going-concern warning and debt default disclosed in May 2026, signaling escalating cash desperation and reliance on toxic financing.
At the time of this filing, OTLC was trading at $0.04 on OTC in the Life Sciences sector, with a market capitalization of approximately $15.7M. The 52-week trading range was $0.02 to $0.11. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.