Stardust Power Triggers Default on Lind Convertible Note as Market Cap Falls Below $15M
SDST sits 36% above its 52-week low of $0.5 on light trading volume (0.4× avg).
Summary
Stardust Power disclosed an event of default under its Lind convertible note after its market cap fell below $15 million for ten consecutive days. The company now owes ~$4.22 million and faces potential acceleration or asset seizure.
Key Events · Legal and Risk Events · SDST
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Convertible Note Default Triggered
On August 11, 2026, Stardust Power's market cap fell below $15 million for ten consecutive trading days, automatically triggering an event of default under its 2025 Convertible Note with Lind Global.
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Mandatory Default Amount Owed
The company now owes a Mandatory Default Amount of approximately $4.22 million, equal to 110% of the outstanding principal of about $3.84 million, plus default interest accruing at 10% per annum.
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Lender Remedies Available
Lind may accelerate the debt, exercise remedies as a secured creditor over substantially all of Stardust's assets, or convert the note into shares at 80% of the average of the three lowest daily VWAPs over the prior 20 trading days.
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Subsidiary Distributions Suspended
During the continuance of the Triggering Event, Stardust's right to receive distributions from its subsidiaries is suspended, further constraining liquidity.
Analysis · SDST · Manufacturing
A default under Stardust Power's senior secured convertible note with Lind Global has been automatically triggered after its market cap remained below $15 million for ten consecutive trading days. The company now owes a Mandatory Default Amount of roughly $4.22 million — 110% of the outstanding principal — plus default interest at 10%. Lind can accelerate the debt, seize substantially all of Stardust's assets, or convert at a steep discount to recent prices. Forbearance talks are ongoing, but nothing is agreed. With only $540,264 in cash at quarter-end and a going-concern warning already in place, this default puts the company's survival at immediate risk.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 40.6% of the 330 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. 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, SDST was trading at $0.68 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $7.2M. The 52-week trading range was $0.50 to $7.67. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.