Vivos Therapeutics Secures Up to $5.5M Convertible Note with 10% Discount for Working Capital

summarizeSummary

Vivos Therapeutics entered into an unsecured convertible promissory note for up to $5.5 million in principal, including a 10% original issuance discount, to provide bridge funding for general working capital ahead of a larger equity financing.

check_boxKey Events

• Convertible Promissory Note

  Vivos Therapeutics entered into an unsecured convertible promissory note with V-Co Investors 3 LLC for a maximum principal amount of up to $5.5 million.

• Initial Funding and Discount

  An initial $900,000 was funded, with the note carrying a 10% original issuance discount, effectively meaning the company receives $0.90 for every $1.00 of principal.

• Bridge to Future Equity Financing

  The note serves as advanced funding for a proposed equity financing of up to $5.5 million, expected to close by February 16, 2026.

• Automatic Conversion

  The principal amount of the note will automatically convert dollar-for-dollar into the equity instruments issued in the Subsequent Financing.

auto_awesomeAnalysis

This convertible promissory note provides Vivos Therapeutics with immediate capital, with an initial funding of $900,000, and the potential for up to $5 million in cash (resulting in $5.5 million principal due to a 10% original issuance discount). While securing funding is crucial for a micro-cap company's operations and runway, the terms indicate a high cost of capital and significant future dilution. The note is a bridge to a "Subsequent Financing," suggesting the company has ongoing capital needs and is actively seeking more permanent equity solutions. Investors should monitor the progress and terms of the anticipated Subsequent Financing, as it will further impact the company's capital structure and share count.