This is a classic distressed extension — the company could not pay on maturity and is burning equity to buy weeks. With only 45 more days and no new capital raised, the risk of default or further dilutive financing on August 14 is high. Monitor for a going-concern qualification in the next 10-Q or an NT 10-K filing. Short sellers should watch for any subsequent 8-K announcing a missed payment or restructuring.
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Executive Summary
Bespoke Extracts amended its Senior Secured Promissory Notes on June 30, 2026, extending the maturity from June 30 to August 14, 2026. The amendment increases the interest rate from 15% to 17% for the extension period and requires the issuance of 287,719 unregistered common shares (valued at ~$41,000) as an extension fee. This is a distressed debt restructuring — the company could not repay on the original maturity and is paying a higher rate and equity to buy 45 more days.
Key Financial Metrics
Key Facts
- Maturity of $410,000 in senior secured notes extended from June 30, 2026 to August 14, 2026 — only a 45-day reprieve.
- Interest rate increased from 15% to 17% per annum for the extension period, reflecting higher credit risk.
- Company issuing 287,719 unregistered common shares (worth ~$41,000 based on $0.1425 VWAP) as an extension fee — 10% of principal paid in equity.
- Notes remain senior secured obligations; no principal was repaid.
- CEO Michael Feinsod signed the filing; no other financing or liquidity sources disclosed.
Financial Impact
Company avoided immediate default on $410,000 in secured debt but paid ~$41,000 in equity and a 2% interest rate increase for a 45-day extension. Total incremental cost of extension is approximately $4,100 in additional interest (17% vs 15% on $410k for 45 days) plus $41,000 in stock.
Risk Factors
- High probability of default or distressed exchange on August 14, 2026 when the notes mature again.
- Dilution from extension shares (287,719 shares) is material relative to likely low share count for a micro-cap OTC stock.
- No new operating capital raised — the extension only delays, does not solve, the liquidity crisis.
- Registration rights on the extension shares could lead to near-term selling pressure once shares are issued.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-075364 |
| Document: ea029668401ex10-1.htm | 0001213900-26-075364 |
| Document: 0001213900-26-075364-index-headers.html | 0001213900-26-075364 |
| Document: 0001213900-26-075364-index.html | 0001213900-26-075364 |
| Document: 0001213900-26-075364.txt | 0001213900-26-075364 |
US Market Status
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