This is a distressed financing. Watch for near-term conversion activity after the 180-day lockup expires (Dec 8, 2026) — the deeply discounted conversion formula and penalty-laden prepayment structure incentivize the lender to convert rather than accept prepayment. Monitor share count and trading volume for toxic dilution effects in Q4 2026 / Q1 2027.
Price Chart
Executive Summary
Liberty Star Uranium & Metals Corp. has secured a $67,000 convertible note from 1800 Diagonal Lending, structured with a 10% original issue discount, a 25% discount conversion price, and heavy prepayment penalties escalating to 125%. This financing signals acute cash constraints at the micro-cap miner and creates deep dilutive overhang given the conversion mechanics.
Key Financial Metrics
Key Facts
- Issued a $73,700 convertible promissory note (principal) for net proceeds of $67,000 — a 10% original issue discount.
- Note matures March 15, 2027; carries 8% interest (22% default rate).
- Conversion price is 75% of the average of the 3 lowest closing bid prices over the prior 10 trading days — a 25% discount to market.
- Conversion restricted for 180 days; prepayment penalties escalate from 100% to 125% of principal over that period.
- Company must reserve 3.5x the shares issuable upon full conversion for the holder.
- Noteholder receives $7,000 expense reimbursement for legal/due diligence fees.
- Company had 110,625,193 common shares outstanding as of the securities purchase agreement date.
Financial Impact
Net proceeds of $67,000 raised via $73,700 principal note with $6,700 immediate economic loss as OID. Dilution potential: at $0.01/share (a typical OTC stock price for pre-revenue miners), the note could convert into ~9.8M shares. At current likely lower prices, dilution could be 3-5x that amount.
Risk Factors
- Severe dilution from discounted equity conversions — conversion at 75% of a 3-day low price is extremely favorable to the noteholder and punitive to common shareholders.
- Escalating prepayment penalties (up to 125%) make early repayment financially unattractive, locking the company into the dilutive path.
- Cross-default provisions with any other 1800 Diagonal debt could trigger cascading defaults.
- Micro-cap uranium explorer issuing debt at this cost signals inability to obtain conventional financing — going concern risk elevated.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-029070 |
| Exhibit: ex3-86.htm | 0001493152-26-029070 |
| Document: form8-k.htm | 0001493152-26-029070 |
| Document: 0001493152-26-029070-index-headers.html | 0001493152-26-029070 |
| Document: 0001493152-26-029070-index.html | 0001493152-26-029070 |
| Document: 0001493152-26-029070.txt | 0001493152-26-029070 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 29, 2026 27d ago | 8-K | $0.0183 $0.0178 | ▲ +2.73% | ▲ +4.68% | $0.0200 (−9.29%) |
Jun 17, 2026 18w ago | 8-K | $0.0229 $0.0219 | ▲ +4.37% | ▲ +3.72% | $0.0200 (+12.66%) |
Apr 21, 2026 26w ago | 8-K | $0.0251 $0.0210 | ▲ +16.33% | ▲ +16.39% | $0.0200 (+20.32%) |
Apr 21, 2026 26w ago | 8-K | $0.0286 $0.0184 | ▼ −35.66% | ▼ −36.75% | $0.0200 (−30.07%) |
US Market Status
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