Monitor APCX share price relative to the $2.00 conversion price. If the stock trades below $2.00, GS Capital has strong incentive to convert and sell, creating persistent selling pressure. Watch for conversion notices and any subsequent 8-Ks reporting share issuances.
Price Chart
Executive Summary
AppTech Payments Corp. entered into a securities purchase agreement with GS Capital Partners, LLC, issuing a $560,000 convertible promissory note (with $55,000 original issue discount, netting $505,000) and 80,000 shares of common stock. The note bears 10% interest, matures November 28, 2027, and is convertible at $2.00/share (or at a 20% discount to VWAP upon default). This is a dilutive, high-cost financing from a known distressed lender, signaling acute cash needs.
Key Financial Metrics
Key Facts
- Issued $560,000 convertible note to GS Capital Partners with $55,000 OID, netting $505,000 in gross proceeds.
- Note carries 10% interest, matures November 28, 2027, with six principal payments of $87,000 starting May 2027.
- Conversion price fixed at $2.00/share; upon default, drops to 80% of lowest 10-day VWAP (20% discount).
- Issued 80,000 shares of common stock at $1.00/share as additional consideration.
- Company must reserve 3,600,000 shares initially for conversion (3x full conversion at $2.00).
- Note contains extensive events of default including failure to deliver shares, delisting, bankruptcy, and judgment over $100,000.
- Upon default, default amount equals 150% of outstanding principal plus accrued interest and other amounts.
- GS Capital is a known distressed/litigation-focused fund; terms include $500/day late delivery penalties and rescission rights.
Financial Impact
Net proceeds of $505,000 from a $560,000 note (10% OID); 80,000 shares issued at $1.00; full conversion at $2.00 would add ~280,000 shares (assuming no default discount). Dilution impact depends on current share price but is material for a micro-cap.
Risk Factors
- Massive dilution if GS Capital converts at default-adjusted price (20% discount to VWAP) and sells into market.
- High likelihood of default given company's cash position and restrictive covenants; default triggers 150% penalty.
- GS Capital's track record as aggressive litigation fund suggests potential for enforcement actions and legal costs.
- Stock may face persistent downward pressure from convertible arbitrage selling by GS Capital.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-007621 |
| Document: apptech_ex1001.htm | 0001683168-26-007621 |
| Document: apptech_8k.htm | 0001683168-26-007621 |
| Document: 0001683168-26-007621-index-headers.html | 0001683168-26-007621 |
| Document: 0001683168-26-007621-index.html | 0001683168-26-007621 |
| Document: 0001683168-26-007621.txt | 0001683168-26-007621 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 8-K | $0.1450 | awaiting T+60 | — | $0.1190 (+17.93%) |
Oct 6, 2026 21d ago | 8-K | $0.1680 | awaiting T+60 | — | $0.1190 (−29.17%) |
Oct 5, 2026 22d ago | 8-K | $0.1510 | awaiting T+60 | — | $0.1190 (+21.19%) |
Aug 14, 2026 10w ago | 8-K | $0.3900 | awaiting T+60 | — | $0.1190 (−69.49%) |
Jul 10, 2026 15w ago | 8-K | $0.1980 $0.1900 | ▲ +4.04% | ▲ +6.93% | $0.1190 (+39.90%) |
Jun 4, 2026 20w ago | Insider Cluster | $0.4900 $0.3500 | ▼ −28.57% | ▼ −32.84% | $0.1190 (−75.71%) |
Mar 2, 2026 34w ago | Insider Cluster | $0.3100 $0.3520 | ▲ +13.55% | ▲ +0.77% | $0.1190 (−61.61%) |
Feb 26, 2026 34w ago | Insider Cluster | $0.3250 $0.3470 | ▲ +6.77% | ▼ −3.32% | $0.1190 (−63.38%) |
Feb 26, 2026 34w ago | Insider Cluster | $0.3250 $0.3450 | ▲ +6.15% | ▼ −3.17% | $0.1190 (−63.38%) |
US Market Status
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