VCI Global Signs $125M ELOC and $1.7M Secured Convertible Notes with Toxic Financing Terms
VCIG is trading near its 52-week low of $1.54 (3.9% above the low).
Summary
VCI Global disclosed a $125M equity line and $1.7M in secured convertible notes with conversion prices as low as $0.328 — an 80% discount to the current $1.60 share price — plus warrants with anti-dilution ratchets and a first-priority lien on all assets.
Key Events · Financing and Capital Events · VCIG
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$125M ELOC with Hudson Global Ventures
Company has the right (not obligation) to sell up to $125M in shares over 36 months at 95% of the three lowest traded prices during the five days before each put notice. Puts range from $25K to $2.5M, subject to a 4.99% beneficial ownership cap.
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$1.7M Secured Convertible Notes
Dune and FirstFire each hold $850K notes with a $0.328 floor conversion price — an 80% discount to the current $1.60 share price. Notes carry 12% one-time interest, $150K aggregate OID, and are secured by a first-priority lien on all company assets.
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850,000 PIPE Warrants at $2.00
Warrants issued to Dune and FirstFire have a $2.00 exercise price with a full anti-dilution ratchet: any future issuance below $2.00 resets the warrant exercise price downward and increases the share count proportionally.
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1,171,875 Pre-Funded Warrants at $0.01
Hudson received pre-funded warrants for 1,171,875 shares at a $0.01 exercise price as consideration for the ELOC commitment — representing potential dilution of roughly 63% of the current 1.86M shares outstanding.
Analysis · VCIG · Trade & Services
VCI Global, trading near its 52-week low at $1.60 with a market cap of roughly $2 million, has entered into a $125 million equity line of credit with Hudson Global Ventures and $1.7 million in secured convertible notes with Dune Equity Holdings and FirstFire Global Opportunities Fund. The convertible notes carry a conversion price as low as $0.328 per share — an 80% discount to the current price — with a 12% one-time interest charge, original issue discount, and a first-priority security interest over all company assets. The ELOC pricing formula (95% of the three lowest traded prices) and the warrant anti-dilution ratchets create a classic death-spiral structure: as the stock falls, conversion prices reset lower, requiring ever more shares to be issued, which further pressures the stock. The September 28 amendments add cash true-up obligations when the floor price limits share issuance, meaning the company may owe cash it cannot pay. This financing follows a $30.3M FY2025 net loss, material weaknesses in internal controls, and a 1-for-15 reverse split in August 2026 — the company is raising capital on deeply coercive terms because it has no better options.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 42.1% of the 323 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.36%. 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, VCIG was trading at $1.60 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2M. The 52-week trading range was $1.54 to $6,497.99. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.