Expect continued downward pressure on AQB common stock as the market prices in the dilutive overhang and the high cost of this financing. Monitor for potential Nasdaq compliance issues given the micro-cap market cap and negative earnings. The 18% dividend and conversion feature create a strong incentive for holders to convert, further diluting common equity.
Price Chart
Executive Summary
AquaBounty raised $2.25M through a private placement of Series B Convertible Preferred Stock, issuing 109,223 shares convertible into up to 2,184,460 common shares at $1.03 per share. The preferred carries an 18% dividend and senior liquidation preference, reflecting severe financial distress for this $6M market cap company. The offering dilutes existing common shareholders by ~42% and signals that the company is resorting to expensive, onerous financing to stay afloat.
Key Financial Metrics
Key Facts
- Gross proceeds of $2,250,000 from sale of 109,223 Series B Convertible Preferred shares
- Conversion price of $1.03 per common share, convertible into up to 2,184,460 common shares (~42% dilution of current outstanding)
- Preferred stock carries 18% annual dividend, senior liquidation preference of $20.60 per share, and redemption rights after a $20M+ financing
- Placement agent Univest Securities receives 7% cash fee on gross proceeds
- Net proceeds to be used for working capital and general corporate purposes
Financial Impact
Dilution of up to 2.18M common shares (42% of current 5.15M outstanding) plus 18% annual dividend accrual on preferred; $2.25M gross proceeds before fees
Risk Factors
- Massive dilution from conversion of Series B and existing Series A preferred (combined potential dilution >130% of current common)
- High 18% dividend obligation strains limited cash resources
- Redemption rights could force a cash outflow if a large financing occurs
- Risk of Nasdaq delisting if market cap or bid price falls below minimum thresholds
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001603978-26-000073 |
| Document: aqb-20260625xex10_1.htm | 0001603978-26-000073 |
| Document: aqb-20260625xex3_1.htm | 0001603978-26-000073 |
| Document: aqb-20260625x8k.htm | 0001603978-26-000073 |
| Document: 0001603978-26-000073-index-headers.html | 0001603978-26-000073 |
| Document: 0001603978-26-000073-index.html | 0001603978-26-000073 |
| Document: 0001603978-26-000073.txt | 0001603978-26-000073 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | EFFECT | $1.05 | awaiting T+5 | — | $1.15 (−9.52%) |
Oct 23, 2026 3d ago | 8-K | $1.11 | awaiting T+5 | — | $1.15 (+3.60%) |
Oct 13, 2026 13d ago | S-3 | $1.04 $1.08 | ▼ −3.85% | ▼ −3.39% | $1.15 (−10.58%) |
Oct 8, 2026 18d ago | 8-K | $0.9742 $1.10 | ▼ −12.91% | ▼ −13.19% | $1.15 (−18.05%) |
Jul 8, 2026 15w ago | 8-K | $0.9400 $0.9600 | ▲ +2.13% | ▲ +1.26% | $1.15 (+22.34%) |
Jun 30, 2026 16w ago | 8-K | $1.07 $0.9698 | ▲ +9.36% | ▲ +9.63% | $1.15 (−7.48%) |
Apr 8, 2026 28w ago | 8-K | $0.9300 $1.12 | ▲ +20.43% | ▲ +16.91% | $1.15 (+23.66%) |
US Market Status
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