This financing structure suggests the company is in financial distress and paying a very high cost for capital. The deep discount conversion and warrant issuance will lead to significant shareholder dilution when converted. Monitor for further dilutive financings.
Price Chart
Executive Summary
HNO International raised $175,000 through two convertible note financings with Jefferson Street Capital and Lambda Ventures, each receiving warrants. This represents a high-cost financing with a 60% discount conversion and 8% interest, signaling financial distress.
Key Financial Metrics
Key Facts
- Raised $175,000 gross proceeds through two $87,500 convertible note financings
- Each note has a $96,250 principal amount with $8,750 original issue discount (10.8% cost of capital)
- Notes convert at 60% of lowest traded price over 20 days, representing a deep discount
- 8% one-time interest charge on principal ($7,700 per note)
- Each investor received warrants to purchase 385,000 shares at $0.25 per share
- Company reserved 13 million shares for potential conversion and warrant exercise
Financial Impact
$175,000 raised with 10.8% upfront cost and 8% interest, plus significant dilution potential
Risk Factors
- Extreme dilution from convertible notes with 60% discount
- High cost of capital with 10.8% upfront discount plus 8% interest
- Potential for significant equity dilution from warrant exercise
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001342916-26-000021 |
| Document: 0001342916-26-000021-index-headers.html | 0001342916-26-000021 |
| Document: 0001342916-26-000021-index.html | 0001342916-26-000021 |
| Document: 0001342916-26-000021.txt | 0001342916-26-000021 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | EFFECT | $0.0365 | awaiting T+60 | — | $0.0229 (+37.12%) |
Sep 11, 2026 6w ago | 8-K | $0.0196 | awaiting T+60 | — | $0.0229 (−17.09%) |
Jul 27, 2026 13w ago | EFFECT | $0.1100 $0.0428 | ▲ +61.05% | ▲ +65.53% | $0.0229 (+79.14%) |
May 8, 2026 24w ago | 8-K | $0.1090 $0.0977 | ▲ +10.34% | ▲ +15.18% | $0.0229 (+78.94%) |
May 1, 2026 25w ago | 8-K | $0.0900 $0.1140 | ▼ −26.67% | ▼ −24.81% | $0.0229 (+74.50%) |
Apr 17, 2026 27w ago | 8-K | $0.0900 $0.1152 | ▼ −27.99% | ▼ −21.85% | $0.0229 (+74.50%) |
Apr 16, 2026 27w ago | 8-K | $0.0900 $0.1183 | ▼ −31.44% | ▼ −24.40% | $0.0229 (+74.50%) |
US Market Status
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