Primech Lands $2M Second Tranche, Slashes Conversion Price to $1.30 as Stock Slides

summarizeSummary

Primech Holdings lowered the conversion price on its outstanding convertible notes to $1.30 from $2.00 to unlock the second $2 million tranche of a $4 million financing, completing the funding on July 7, 2026.

check_boxKey Events · Financing and Capital Events · PMEC

• Conversion Price Slashed to $1.30

  Reflecting the stock's slide since the original agreement in January 2026, the conversion price on the $4 million convertible notes was reduced from $2.00 to $1.30 per share — a 35% cut.

• Second $2M Tranche Funded

  The amendment unlocked the second $2 million tranche of the financing, which was completed on July 7, 2026, bringing total proceeds to $4 million.

• New Financing Restrictions

  Future capital-raising flexibility is now constrained: the company agreed not to issue convertible securities with variable pricing below a $1.30 floor or equity financings below $1.30 per share without offering the investor a matching conversion price.

• Carve-Out for Victory Concept

  Preserving a relationship with an existing stakeholder, the company retained the ability to issue up to $1 million in shares to Victory Concept Electronics Ltd and affiliates at market price.

auto_awesomeAnalysis · PMEC · Trade & Services

To unlock the remaining $2 million of a $4 million financing, Primech amended its convertible note terms. The conversion price was cut from $2.00 to $1.30 — a 35% reduction — mirroring the stock's decline since the original deal in January. While the cash infusion extends the runway, the lower conversion price raises potential dilution for existing shareholders. The company also agreed to new restrictions on future financings below $1.30, limiting its flexibility. The deal closed on July 7, 2026, with the second tranche now funded.