RMX Industries Raises $257,000 Via 12% Note With 35%-Discount Default Conversion
RMXI has more than doubled off its 52-week low of $1.651.
Summary
RMX Industries sold a $295,550 face-value 12% note to Vanquish Funding for $257,000 cash, repayable at $331,016 over seven monthly payments through October 2027, with default-triggered conversion at a 35% discount to the lowest recent bid. Up to $1.1 million more can be drawn over the next year.
Key Events · Financing and Capital Events · RMXI
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New $257,000 Discounted Note
On October 21, 2026, RMX issued a 12% promissory note with a $295,550 principal amount, including a $38,550 original issue discount, to Vanquish Funding Group for $257,000 cash.
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Repayment Cost and Schedule
A one-time 12% interest charge of $35,466 brings total payback to $331,016 across seven monthly payments from April 15, 2027 through maturity on October 15, 2027 — about 29% more than the cash received.
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Default Conversion at 35% Discount
Only after an Event of Default and a 180-day lock-up may Vanquish convert at 65% of the lowest closing bid price over the prior 10 trading days, capped at 4.99% beneficial ownership; the default amount is 150% of principal plus interest (200% on a follow-on share-delivery default).
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Subordinated to JAK Notes
The note ranks junior to the senior secured convertible notes issued under the October 15, 2025 Securities Purchase Agreement, and cash payments are blocked while a JAK default continues.
Analysis · RMXI · Technology
The cost of this money is steep: RMX borrowed $257,000 in cash against a $295,550 face-value note, and with the $38,550 original issue discount plus a one-time 12% interest charge ($35,466), the company repays $331,016 over seven monthly installments starting April 15, 2027 — roughly 29% more than it received. What makes the structure dangerous is the conversion feature. Only after a default, and only after a 180-day lock-up, can Vanquish convert at 65% of the lowest closing bid over the prior 10 trading days — a 35% discount to the weakest price in the window. That structure pushes the stock down as conversions approach and hands the lender a built-in spread, so a payment miss converts into heavy dilution rather than a simple default. Because the note is subordinated to the existing JAK Notes, Vanquish gets paid only after those senior holders, and up to $1.1 million more can be drawn over the next 12 months on the same template. Against a going-concern warning disclosed in the August 10-Q, this is survival financing at a high cost.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 38.5% of the 1020 measured filings Wiseek scored 8 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, RMXI was trading at $4.25 on OTC in the Technology sector, with a market capitalization of approximately $42.8M. The 52-week trading range was $1.65 to $18.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.