CDT Equity issues $6.75M senior secured convertible note and 225,000 warrants to J.J. Astor & Co.
On October 6, 2026, CDT Equity Inc. issued a senior secured convertible note to J.J. Astor & Co. with an original principal amount of $6,750,000, funded as $5,000,000 in two tranches. The first tranche delivered $3,000,000 in cash (net proceeds $2,869,850) against $4,050,000 of principal, with a $2,000,000 second tranche against $2,700,000 of principal subject to conditions including a $3.00 minimum closing bid price and stockholder approval. The note matures March 24, 2027, requires 24 weekly installments of $1...
Key takeaways
Financing closed on October 6, 2026: $6,750,000 original principal, $5,000,000 funded amount, $3,000,000 first-tranche cash received (net proceeds $2,869,850), with a $2,000,000 second tranche conditional on or before December 31, 2026.
Repayment profile: 24 weekly installments of $168,750 starting October 14, 2026, with full maturity on March 24, 2027.
Conversion terms: greater of 70% of the lowest 20-trading-day closing price or a $0.18354 Floor Price, subject to a 4.99% Beneficial Ownership Cap (increasable to 9.99% or 19.99%).
Warrants: 225,000 shares at a $0.9177 exercise price with a 5-year term, issued alongside the note.
Security and existing debt: first-priority lien on assets of CDT Equity Inc. and subsidiary guarantor CDT Equity Ltd. (England and Wales); $2,675,805.50 outstanding under the Existing Note as of October 6, 2026.
Default economics of 24% per annum default rate and a 120% default principal multiplier; 4% origination fee ($80,000).
Nasdaq compliance: company must effect a reverse stock split by October 21, 2026 if the closing bid price remains below $1.00, and must hold a stockholder meeting by November 13, 2026 to approve conversion and warrant share issuance.
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