This is a toxic convertible financing that will likely lead to massive dilution as investors convert at deep discounts. Expect sustained selling pressure as the notes convert. The small capital raise ($118K net) relative to the massive potential share count suggests the company is in severe financial distress. Avoid long positions; monitor for further dilutive financings or a reverse split.
Price Chart
Executive Summary
HyOrc Corp issued two convertible promissory notes totaling $135,000 in principal to Monroe Street Capital Partners and Lambda Ventures LLC, netting approximately $118,000 after fees and discounts. The notes carry a 77% of lowest trading price conversion feature and are accompanied by 250,000 commitment shares, creating severe potential dilution of up to 8 million shares. This is a distressed financing at highly dilutive terms for a micro-cap engineering services company.
Key Financial Metrics
Key Facts
- Issued two convertible notes with $67,500 principal each, aggregate gross proceeds $125,000, net proceeds ~$118,000
- Conversion price set at 77% of the lowest trading price during the 15 trading days prior to conversion
- 250,000 commitment shares issued to investors, cancellable if notes fully satisfied within 6 months
- Company reserved up to 4,000,000 shares per note (8,000,000 total) for potential conversion
- Notes mature 12 months from issuance; company can prepay at 110% within first 181 days
Financial Impact
Net proceeds of ~$118,000 against potential dilution of up to 8 million shares (likely exceeding current outstanding shares by a wide margin). The 77% of lowest trading price conversion feature ensures deep discount conversion, maximizing dilution.
Risk Factors
- Extreme dilution from convertible notes with 77% of lowest price conversion feature
- Potential death spiral as conversions at lower prices trigger more conversions
- Company appears to be in financial distress with minimal capital raised on highly unfavorable terms
- OTC stock with no revenue disclosed and prior poor trading performance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-022853 |
| Document: 0001493152-26-022853-index-headers.html | 0001493152-26-022853 |
| Document: 0001493152-26-022853-index.html | 0001493152-26-022853 |
| Document: 0001493152-26-022853.txt | 0001493152-26-022853 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $0.0741 | awaiting T+5 | — | $0.0741 (+0.00%) |
Oct 8, 2026 18d ago | 10-Q/A | $0.0800 $0.0749 | ▼ −6.38% | ▼ −4.41% | $0.0741 (−7.37%) |
Oct 8, 2026 18d ago | 10-Q/A | $0.0800 $0.0749 | ▼ −6.38% | ▼ −4.41% | $0.0741 (−7.37%) |
Sep 17, 2026 5w ago | 8-K | $0.0699 $0.0721 | ▼ −3.15% | ▼ −2.30% | $0.0741 (−6.01%) |
Aug 10, 2026 11w ago | 8-K | $0.0574 $0.0749 | ▲ +30.49% | ▲ +30.53% | $0.0741 (+29.09%) |
Aug 10, 2026 11w ago | 8-K | $0.0574 $0.0749 | ▼ −30.49% | ▼ −30.53% | $0.0741 (−29.09%) |
May 14, 2026 23w ago | 8-K | $0.0844 $0.0765 | ▲ +9.37% | ▲ +8.65% | $0.0741 (+12.20%) |
US Market Status
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