Two Hands Corp Lands $125K via Toxic Convertible Note with Deep-Discount Conversion

summarizeSummary

Two Hands Corp raised $125,000 in net proceeds through a convertible note carrying a 25% discount-to-market conversion feature—a toxic financing structure that could massively dilute existing shareholders, given the company's zero-revenue, going-concern status.

check_boxKey Events · Financing and Capital Events · TWOH

• Toxic Convertible Note Issued

  Two Hands Corp sold a $151,800 convertible note to Vanquish Funding Group for $132,000, yielding net proceeds of $125,000 after fees. The note matures on July 6, 2027, and carries 10% annual interest.

• Deep Discount Conversion Feature

  Conversion is set at 75% of the lowest closing bid price over the 10 trading days prior to conversion—a 25% discount to market. With the stock at $0.0017, this mechanism could trigger massive share issuance and extreme dilution.

• Financial Distress Context

  The company has zero revenue, a going-concern warning, and a critically low cash balance per its latest 10-Q. Although this financing provides short-term liquidity, it underscores a precarious financial position.

• Right of First Refusal on Future Financings

  Vanquish secured a right of first refusal on any financings up to $1 million over the next 12 months, potentially locking the company into similarly toxic terms for future capital needs.

auto_awesomeAnalysis · TWOH · Trade & Services

Already carrying a going-concern warning and zero revenue, Two Hands Corp has entered into a convertible note with Vanquish Funding Group that embeds a 25% discount to market on conversion—a structure notorious for triggering heavy dilution as the holder converts and sells shares. With the stock trading at $0.0017, the conversion price could sink to fractions of a cent, potentially unleashing billions of new shares. While the deal provides immediate cash, it also signals acute financial distress and a readiness to accept severely dilutive terms.