Stardust Power Triggers Default on Lind Convertible Note as Market Cap Falls Below $15M

summarizeSummary

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.

check_boxKey Events · Legal and Risk Events · SDST

• 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.

• 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.

• 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.

• Subsidiary Distributions Suspended

  During the continuance of the Triggering Event, Stardust's right to receive distributions from its subsidiaries is suspended, further constraining liquidity.

auto_awesomeAnalysis · 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.