Oncotelic Therapeutics Secures $157K Convertible Note with Highly Dilutive Terms
OTLC has more than doubled off its 52-week low of $0.015.
Summary
Oncotelic Therapeutics obtained a $157,000 convertible note with an original issue discount, high interest, and dilutive conversion terms, reflecting the company's urgent need for capital amidst a 'going concern' warning.
Key Events · Financing and Capital Events · OTLC
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Secured Convertible Note
On June 23, 2026, the company entered into a Securities Purchase Agreement for a convertible promissory note with a gross principal of $178,410, providing $157,000.80 in cash after a 12% original issue discount.
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Dilutive Conversion Terms
The note carries a 12% annual interest rate and is convertible into common stock at a fixed price of $0.06 or 85% of the lowest traded price, whichever is lower, leading to potential significant dilution.
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Commitment Shares Issued
Pacific Pier Capital II, LP received 500,000 shares of common stock as commitment shares.
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Aggressive Default Provisions
The note includes events of default such as failure to maintain a $10 million market capitalization or uplist to NASDAQ within six months, triggering a 150% repayment penalty on the outstanding principal and interest.
Analysis · OTLC · Life Sciences
Oncotelic Therapeutics, which recently reported a 'going concern' warning, has secured a small convertible promissory note for $157,000.80. The financing comes with an original issue discount, a high interest rate, and a conversion price that floats at 85% of the lowest traded price, indicating significant dilution for existing shareholders. The note also includes aggressive default clauses, such as a 150% repayment penalty and requirements to maintain a minimum market capitalization and uplist to NASDAQ, highlighting the company's precarious financial position and the high cost of capital.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1644 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. 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, OTLC was trading at $0.04 on OTC in the Life Sciences sector, with a market capitalization of approximately $19.2M. The 52-week trading range was $0.02 to $0.11. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.