Two Hands Corp Secures $75K in Highly Dilutive Convertible Note Financing

summarizeSummary

Two Hands Corp entered into a securities purchase agreement for a $94,300 convertible promissory note, receiving $75,000 in net proceeds after significant fees. The note features a deep discount conversion price and high prepayment penalties, indicating a costly capital raise.

check_boxKey Events

• Secured Convertible Note

  Two Hands Corp received $75,000 in net proceeds from a $94,300 convertible promissory note with Vanquish Funding Group LLC.

• Highly Dilutive Terms

  The note is convertible at a 25% discount to the lowest closing bid price over 10 trading days, potentially leading to significant dilution for existing shareholders.

• High Financing Costs

  The company incurred $7,000 in legal and due diligence fees, reducing the effective capital raised to $75,000 from the $82,000 purchase price.

• Prepayment Penalties

  The note includes substantial prepayment penalties, ranging from 115% to 125% of the outstanding amount, depending on the prepayment period.

auto_awesomeAnalysis

This financing provides Two Hands Corp with much-needed capital for general working capital purposes, but at a substantial cost to existing shareholders. The convertible note includes a 25% discount to the lowest bid price over a 10-day period, which is highly dilutive. Additionally, the company incurred $7,000 in legal and due diligence fees, further reducing the net proceeds. The aggressive conversion terms and high prepayment penalties (up to 125%) suggest the company faced limited options for securing funding, which could put significant downward pressure on the stock price as the note becomes convertible.