VSee Health resolves default with $50K cash, $175K in convertible notes, and 1M shares

summarizeSummary

VSee Health settled a default on a $271,739 note by agreeing to pay $50,000 cash, issue $175,000 in deeply discounted convertible notes, and issue 1 million restricted shares to the lenders, adding significant dilution and debt obligations.

check_boxKey Events · Legal and Risk Events · VSEE

• Default Settlement Reached

  On July 21, 2026, VSee Health entered a Settlement Agreement with ADI Funding and M2B Funding, resolving a default on a $271,739 secured promissory note.

• Immediate Cash Payment Required

  Within three business days, the company must pay ADI $50,000 in cash; a $500 per day late charge applies if the deadline is missed.

• Convertible Notes Issued

  ADI receives a $50,000 convertible note and M2B receives a $125,000 convertible note, both maturing in six months. They carry 0% interest if paid on time but are convertible at 75% of the lowest VWAP over the 20 trading days before conversion.

• 1 Million Restricted Shares Issued

  ADI and M2B each receive 500,000 restricted shares of common stock with piggyback registration rights, totaling 1 million shares.

auto_awesomeAnalysis · VSEE · Industrial Applications And Services

To resolve a default on a $271,739 secured note, VSee Health agreed to an immediate $50,000 cash payment, the issuance of $175,000 in convertible notes carrying a 75% of lowest VWAP conversion discount, and the delivery of 1 million restricted shares to the lenders. The settlement further mandates that 50% of future financing proceeds—100% from the existing ELOC—be directed toward repaying the original note. For a company already wrestling with going concern doubts, a recent default, and a stock trading near its all-time low of $0.0777, these terms layer on significant dilution and debt obligations. The convertible notes and shares create a substantial overhang precisely when the company is desperate for capital.