The $5M secured convertible note to Pronghorn matures in approximately two months (December 31, 2026). Monitor for Pronghorn's repayment or a potential conversion event. The board resignation five days prior to this agreement may indicate governance issues at the borrower level.
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Executive Summary
GridAI Technologies Corp. advanced an additional $1.5M to Pronghorn Resources, LLC on October 22, 2026, bringing total advances to $5.0M under a Third Amended and Restated Secured Convertible Note. The note matures December 31, 2026, carries 7% interest post-maturity, and is convertible into 10% of Pronghorn's fully diluted equity upon an uncured payment default. This filing follows a board resignation five days earlier, suggesting possible management transition at the borrower.
Key Facts
- GridAI loaned an additional $1,500,000 to Pronghorn Resources on October 22, 2026 (Fourth Advance)
- Total principal outstanding under the Third Amended and Restated Secured Convertible Note is $5,000,000
- Note matures on the earlier of December 31, 2026 or a Change of Control Transaction
- Interest accrues at 7% per annum from and after the Maturity Date, payable in cash
- Upon an uncured payment Event of Default, GridAI may convert the Default Amount into 10% of Pronghorn's fully diluted membership interests
- The note is secured by Pronghorn's assets under a Security Agreement, as amended
- A board member (Manpreet Uppal) resigned on October 19, 2026, five days before this agreement was signed
Financial Impact
GridAI deployed an additional $1.5M in cash, increasing its total secured loan exposure to Pronghorn to $5.0M. At GridAI's $40M market cap, this represents 12.5% of market cap deployed as a loan to a private entity.
Risk Factors
- Pronghorn may fail to repay the $5M principal at the December 31, 2026 maturity date, triggering a potential conversion into 10% of Pronghorn's equity
- The value of the conversion interest (10% of Pronghorn's fully diluted capitalization) is unknown and may be worth less than the principal amount
- The board resignation on October 19, 2026, combined with this large loan, suggests possible financial distress or management changes at Pronghorn
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-119672 |
| Document: tm2628084d2_8k.htm | 0001104659-26-119672 |
| Document: tm2628084d2_10-2.htm | 0001104659-26-119672 |
| Document: 0001104659-26-119672-index-headers.html | 0001104659-26-119672 |
| Document: 0001104659-26-119672-index.html | 0001104659-26-119672 |
| Document: 0001104659-26-119672.txt | 0001104659-26-119672 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 today | 8-K | $5.33 | awaiting T+1 | awaiting T+1 | $4.96 (−6.94%) |
Oct 28, 2026 2d ago | 8-K | $5.45 $4.96 | ▼ −8.99% | ▼ −7.22% | $4.96 (−8.99%) |
Oct 28, 2026 2d ago | 8-K | $5.45 $4.96 | ▲ +8.99% | ▲ +7.22% | $4.96 (+8.99%) |
Oct 23, 2026 7d ago | 8-K | $5.55 $5.84 | ▲ +5.14% | ▲ +4.57% | $4.96 (−10.63%) |
Oct 20, 2026 11d ago | EFFECT | $4.63 $4.90 | ▲ +5.83% | ▲ +5.31% | $4.96 (+7.13%) |
Oct 7, 2026 23d ago | 8-K | $4.80 $4.97 | ▲ +3.54% | ▲ +2.94% | $4.96 (+3.33%) |
Oct 6, 2026 24d ago | S-1/A | $4.12 $4.80 | ▼ −16.50% | ▼ −16.93% | $4.96 (−20.39%) |
Aug 24, 2026 9w ago | S-1/A | $3.65 $4.06 | ▼ −11.23% | ▼ −10.91% | $4.96 (−35.89%) |
Jul 31, 2026 13w ago | S-1/A | $2.91 $2.75 | ▲ +5.50% | ▲ +7.30% | $4.96 (−70.45%) |
Jul 23, 2026 14w ago | 8-K | $3.04 $3.15 | ▲ +3.62% | ▲ +3.60% | $4.96 (+63.16%) |
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