Yimutian Draws Another $2.5M Convertible Note at $0.5378 per ADS

summarizeSummary

Yimutian issued a $2.5 million convertible note at $0.5378 per ADS, bringing total borrowings under its $30 million facility to $8.56 million. The one-year note carries a $500,000 cash covenant and a conversion price that ratchets down on future dilutive sales.

check_boxKey Events · Financing and Capital Events · YMT

• Fifth Draw Under $30M Facility

  Issued a $2,500,000 senior convertible note on October 23, 2026, the fifth closing under the December 2025 securities purchase agreement.

• Conversion at $0.5378 per ADS

  Initial conversion price of $0.5378 per ADS, close to today's $0.50 price; the price resets lower on future dilutive issuances and the note matures October 23, 2027.

• Cumulative Principal Now $8.56M

  Prior draws of $3,370,000, $1,500,000, $260,000 and $933,333 plus this $2,500,000 total $8,563,333 of the $30,000,000 facility.

• Cash Covenant and Default Terms

  Requires at least $500,000 of available cash at each six-month measurement date; the interest rate steps up to 19% annually on an event of default.

auto_awesomeAnalysis · YMT · Technology

Yimutian sold a $2.5 million senior convertible note on October 23, 2026, the fifth draw under a $30 million facility first signed in December 2025. The note converts at $0.5378 per ADS, roughly in line with today's $0.50 price, and matures in one year. With cumulative principal drawn now at $8.56 million, the company is funding itself in small increments rather than in one raise — a pattern that keeps the lights on but steadily builds a conversion overhang. The terms carry real teeth: a $500,000 minimum cash covenant tested every six months, a 19% default rate, and a conversion price that resets downward on future dilutive issuances. The note also sits senior to all other debt and blocks dividends and asset transfers without holder consent.