The combination of a large ELOC and a new preferred stock issuance signals severe cash burn and an inability to raise capital on favorable terms. Traders should expect intense downward pressure on JAGX as the ELOC investor sells shares into the market at a 5% discount. Monitor for any registration statement filing for resale of the shares, which would trigger the selling. The $2M market cap suggests any meaningful draw on the ELOC will be extremely dilutive.
Price Chart
Executive Summary
Jaguar Health entered into two capital-raising agreements with C/M Capital Partners on June 9, 2026: (1) an equity line of credit (ELOC) allowing the Company to sell up to $40M or 19.99% of outstanding common stock to the investor at a discount, and (2) a preferred stock purchase agreement for an undisclosed amount of Series P Non-Convertible Preferred Stock redeemable into common shares. The Company also amended its bylaws via Item 5.03. Combined, these transactions are highly dilutive to existing common shareholders, with the ELOC alone capable of issuing nearly 20% of the float, and the preferred stock adding further dilution upon redemption. With a market cap of only $2M, this represents a massive potential increase in share count, signaling severe financial distress and dependency on external capital.
Key Facts
- Jaguar Health entered a Common Stock Purchase Agreement (ELOC) with C/M Capital Partners for up to $40M or 19.99% of outstanding common stock, whichever is lower.
- The Company also entered a Preferred Stock Purchase Agreement for Series P Non-Convertible Preferred Stock, redeemable into common shares or pre-funded warrants.
- Commitment shares of $800,000 worth of common stock (valued at VWAP purchase price) will be issued to the ELOC investor as compensation.
- The ELOC includes Fixed Purchases (up to $1.5M per draw), VWAP Purchases, and Additional VWAP Purchases (up to $4.5M aggregate per day), all at a 5% discount to market.
- A Floor Price of $1.10 per share is set for purchases under the ELOC, far above the current price given the $2M market cap.
- The preferred stock agreement includes a $20,000 non-accountable fee to the investor, withheld from the purchase price.
- The Company amended its bylaws (Item 5.03), though specific changes are not detailed in the filing.
- Market cap of $2M makes these financings extremely large relative to the company's size, implying massive dilution.
Financial Impact
Potentially massive dilution: the ELOC alone can increase the share count by up to 19.99% (approx. 19.99% of current float) at deeply discounted prices (5% below market), plus an unknown number of shares from the preferred stock redemption. The $800k commitment shares further dilute existing holders.
Risk Factors
- Severe dilution from the ELOC could crush the stock price as the investor sells discounted shares.
- Preferred stock redemption adds further overhang of common shares.
- The company's ability to remain listed on Nasdaq is at risk given the tiny market cap and dilutive financings.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-266770 |
| Document: d570985dex103.htm | 0001193125-26-266770 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | S-3 | $2.04 | awaiting T+60 | — | $2.04 (+0.00%) |
Oct 8, 2026 18d ago | DEF 14A | $4.79 | awaiting T+60 | — | $2.04 (+57.41%) |
Oct 5, 2026 21d ago | 8-K | $4.73 | awaiting T+60 | — | $2.04 (+56.87%) |
Sep 28, 2026 28d ago | 8-K | $6.02 | awaiting T+60 | — | $2.04 (+66.11%) |
Sep 24, 2026 4w ago | SC 13G/A | $7.70 | awaiting T+60 | — | $2.04 (+73.51%) |
Sep 24, 2026 4w ago | 424B5 | $7.06 | awaiting T+60 | — | $2.04 (+71.10%) |
Sep 24, 2026 4w ago | 8-K | $7.06 | awaiting T+60 | — | $2.04 (+71.10%) |
Sep 21, 2026 5w ago | 8-K | $34.46 | awaiting T+60 | — | $2.04 (−94.08%) |
Sep 15, 2026 5w ago | 8-K | $0.2246 | awaiting T+60 | — | $2.04 (−808.28%) |
Sep 3, 2026 7w ago | 424B5 | $10.41 | awaiting T+60 | — | $2.04 (+80.40%) |
US Market Status
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