The related-party convertible note signals insider support and provides short-term liquidity, but governance concerns (CFO sits on both sides) and the conversion trigger ($3M+ equity raise) introduce uncertainty. Monitor for any subsequent equity offering that would trigger conversion and dilution. If no such financing occurs, the $1M principal plus interest must be repaid in one year, which could strain liquidity.
Price Chart
Executive Summary
Agassi Sports Entertainment Corp. entered into a $1,000,000 convertible promissory note with Investments AKA, LLC, an entity owned by largest shareholder Andre Agassi and whose CFO is the company's own CFO. The note carries a 3.96% interest rate, matures July 27, 2027, and automatically converts into equity at the same price as new investors in a future $3M+ equity financing. Proceeds are earmarked for general working capital.
Key Financial Metrics
Key Facts
- Entered $1,000,000 convertible note with Investments AKA, LLC, owned by Andre Agassi (largest stockholder) and controlled by CFO Shawn Cable.
- Interest rate of 3.96% per annum (AFR), default rate of 10%.
- Maturity date July 27, 2027; note automatically converts into equity at same price as new investors upon a future $3M+ equity financing.
- Proceeds used for general working capital; note is subordinated to senior debt.
- Unregistered sale under Section 4(a)(2) and Rule 506(b) of Regulation D.
Financial Impact
The $1M note provides immediate working capital but creates a $1M debt obligation. If a $3M+ equity financing occurs, the note converts at market price, potentially diluting existing shareholders by an unknown amount.
Risk Factors
- Conversion at a future equity financing would dilute existing shareholders; the amount of dilution is unknown until the financing occurs.
- Related-party structure (CFO of both entities) raises governance concerns and potential conflicts of interest.
- If no qualifying equity financing occurs, the company must repay $1M plus interest in one year, which could pressure cash reserves.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-035332 |
| Document: form8-k.htm | 0001493152-26-035332 |
| Document: 0001493152-26-035332-index-headers.html | 0001493152-26-035332 |
| Document: 0001493152-26-035332-index.html | 0001493152-26-035332 |
| Document: 0001493152-26-035332.txt | 0001493152-26-035332 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 8-K | $5.49 | awaiting T+20 | — | $5.20 (−5.28%) |
Oct 20, 2026 6d ago | SC 13D/A | $5.20 | awaiting T+20 | — | $5.20 (−0.00%) |
Oct 19, 2026 8d ago | 8-K | $5.00 | awaiting T+20 | — | $5.20 (+4.00%) |
Oct 1, 2026 26d ago | 8-K | $5.00 | awaiting T+20 | — | $5.20 (+4.00%) |
Sep 24, 2026 4w ago | SC 13D/A | $4.75 $5.50 | ▲ +15.79% | ▲ +16.21% | $5.20 (+9.47%) |
Aug 13, 2026 10w ago | EFFECT | $6.30 $5.70 | ▲ +9.52% | ▲ +7.78% | $5.20 (+17.46%) |
Aug 10, 2026 11w ago | S-1/A | $6.20 $5.50 | ▲ +11.29% | ▲ +10.23% | $5.20 (+16.13%) |
Aug 10, 2026 11w ago | 8-K | $6.20 $5.50 | ▼ −11.29% | ▼ −10.23% | $5.20 (−16.13%) |
Aug 4, 2026 12w ago | 8-K | $6.50 $6.22 | ▼ −4.31% | ▼ −3.07% | $5.20 (−20.00%) |
Jul 30, 2026 12w ago | 8-K | $6.40 $6.50 | ▲ +1.56% | ▼ −2.40% | $5.20 (−18.75%) |
US Market Status
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