The deeply discounted convertible note (70% of lowest 10-day VWAP) combined with 200M commitment shares creates severe near-term dilution overhang. Monitor for conversion notices from ClearThink after the 180-day lock (Jan 2027) and any further draws under the facility. The use of proceeds to repay existing debt rather than fund operations signals ongoing cash constraints. The stock is at high risk of continued downward pressure from dilution mechanics.
Price Chart
Executive Summary
Edgemode entered into a convertible note financing with ClearThink Capital Partners for up to $1.15M principal ($1M net proceeds after OID), of which $625K has been drawn as of the filing date. Proceeds were used to repay ~$328K in promissory notes and $225K to Blackberry AIF. The note carries a 12% interest rate, a 70%-of-lowest-10-day-VWAP conversion discount, and the company issued 200M commitment shares as additional consideration—creating severe dilution risk for existing shareholders.
Key Financial Metrics
Key Facts
- Up to $1.15M convertible note with $150K OID (net proceeds up to $1M); $625K drawn to date.
- Conversion price set at 70% of the lowest closing price over the 10 days prior to conversion—deeply dilutive.
- 200M commitment shares issued to ClearThink as additional consideration, adding immediate dilution.
- Proceeds used to repay ~$328K in existing promissory notes and $225K to Blackberry AIF—capital is not funding growth.
- Note matures Dec 31, 2027; 12% interest; convertible after 180 days or upon an event of default.
- Beneficial ownership blocker at 9.99% limits conversion but does not prevent massive dilution from multiple conversions.
- Company is a former shell company (per filing), limiting Rule 144 resale for 9+ months.
Financial Impact
Up to $1.15M principal raised; $150K OID; 200M commitment shares issued; proceeds used for debt paydown, not growth
Risk Factors
- Massive dilution from 200M commitment shares and potential conversion of up to $1.15M note at a 30% discount to market
- Cash constraints indicated by use of proceeds for debt paydown rather than operations
- Former shell company status limits Rule 144 resale for 9+ months, creating liquidity risk for the holder
- OTC listing with no 12(b) securities—low liquidity amplifies price impact of any selling
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-006657 |
| Document: edgemode_1001.htm | 0001683168-26-006657 |
| Document: edgemode_8k.htm | 0001683168-26-006657 |
| Document: 0001683168-26-006657-index-headers.html | 0001683168-26-006657 |
| Document: 0001683168-26-006657-index.html | 0001683168-26-006657 |
| Document: 0001683168-26-006657.txt | 0001683168-26-006657 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $0.000200 | awaiting T+5 | — | $0.000300 (−50.00%) |
Oct 16, 2026 10d ago | 8-K | $0.000200 $0.000200 | · 0.00% | ▲ +0.14% | $0.000300 (+50.00%) |
Aug 21, 2026 9w ago | 8-K | $0.000600 $0.000500 | ▲ +16.67% | ▲ +17.14% | $0.000300 (+50.00%) |
Jun 29, 2026 17w ago | 8-K | $0.003400 $0.003800 | ▲ +11.76% | ▲ +10.38% | $0.000300 (−91.18%) |
Mar 4, 2026 33w ago | 8-K | $0.0118 $0.009300 | ▲ +21.19% | ▲ +18.95% | $0.000300 (+97.46%) |
US Market Status
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