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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...

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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.

Key metrics

Original Principal AmountNote effective October 6, 2026
$6,750,000
Total Funding AmountTwo tranches
$5,000,000
First Tranche Cash ReceivedOctober 6, 2026
$3,000,000
First Tranche Net ProceedsOctober 6, 2026
$2,869,850
Second Tranche CashConditional on or before December 31, 2026
$2,000,000
Weekly Installment Payment24 weekly payments
$168,750
Warrants IssuedOctober 6, 2026
225,000 shares
Warrant Exercise Price5-year term
$0.9177

Primary source

TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.

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