Monitor for additional Series E issuances and any conversion-triggering events (PPA, change of control, public offering). The 50%-of-VWAP conversion price is deeply dilutive to common shareholders if triggered. The 8% cumulative dividend adds fixed cost to a pre-revenue company.
Price Chart
Executive Summary
Ocean Thermal Energy Corp. sold two shares of newly-authorized Series E Preferred stock to two private investors for $20,000 total, and filed a certificate of designation authorizing up to 150 Series E Preferred shares. The preferred shares carry an 8% cumulative dividend and are convertible into common stock upon certain events, with a conversion price set at 50% of the VWAP. This is a small capital raise with significant potential future dilution if conversion triggers are met.
Key Financial Metrics
Key Facts
- Sold 2 Series E Preferred shares at $10,000 each for $20,000 total to two private investors.
- Authorized up to 150 Series E Preferred shares via certificate of designation.
- Preferred shares carry 8% annual cumulative dividend, payable in cash or common stock.
- Conversion triggers include execution of a commercial contract, change of control, or significant public offering.
- Conversion price set at 50% of 10-day VWAP, creating significant potential dilution.
- Company intends to issue more Preferred Shares to raise capital and strengthen balance sheet.
Financial Impact
Immediate $20,000 capital raise; potential for up to $1.5M in additional capital if all 150 Series E shares are issued. Conversion at 50% of VWAP creates severe dilution risk for common shareholders.
Risk Factors
- Severe dilution to common shareholders upon conversion of preferred shares at 50% of VWAP.
- 8% cumulative dividend adds fixed cost burden to a pre-revenue company.
- Potential for up to $1.5M in additional preferred issuances, further diluting common equity.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001654954-26-006603 |
| Document: 0001654954-26-006603-index-headers.html | 0001654954-26-006603 |
| Document: 0001654954-26-006603-index.html | 0001654954-26-006603 |
| Document: 0001654954-26-006603.txt | 0001654954-26-006603 |
US Market Status
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