Banzai Secures $2.14M Convertible Note with 30% OID and Warrants at $2.75
PARA is trading near its 52-week low of $0.975 (2.5% above the low).
Summary
Banzai raised $1.5 million upfront via a convertible note with a 30% OID, 10% interest, and warrants at $2.75 — terms that heavily favor the lender and require a stockholder vote on 20%+ dilution.
Key Events · Financing and Capital Events · PARA
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Convertible Note Financing
Issued $2.14M convertible note (up to $3.57M) to Evergreen Capital Management with 30% OID, 10% interest, maturing June 4, 2027. $1.5M funded at closing.
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Warrants Issued
779,221 warrants issued at $2.75 exercise price, expandable to 1,298,701 shares with additional tranches. Immediately exercisable, 5-year term.
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Dilution and Stockholder Vote
Company must hold stockholder meeting within 60 days to approve issuing >20% of outstanding shares at a discount to Nasdaq Minimum Price. Exchange cap of 19.99% until approval.
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Mandatory Prepayment Terms
50% of net proceeds from any future financing must prepay the note; 110% voluntary prepayment; 20% principal increase on default; 18% default interest.
Analysis · PARA · Technology
Banzai International entered a $2.14 million convertible note financing with Evergreen Capital Management, expandable to $3.57 million, carrying a 30% original issue discount and 10% interest. The note converts at $2.75 per share — a price far above the current $1.00 market price — and comes with warrants for up to 1.3 million shares at the same $2.75 strike. The company must hold a stockholder vote within 60 days to approve issuing more than 20% of outstanding shares at a discount to Nasdaq's minimum price, and 50% of any future financing proceeds must go to prepay this note. Against a backdrop of a going-concern warning, $0.6 million in cash, and a 24% revenue decline, this financing provides runway but on highly dilutive, lender-favorable terms.
How filings like this one have moved
In the 30 days to Sep 11, 2026, 35.7% of the 1694 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.10%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PARA was trading at $1.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.5M. The 52-week trading range was $0.98 to $79.60. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.