Monitor for early conversion activity by Monroe Street after the 180-day lockout period ends (March 2027). The deeply discounted conversion formula (75% of lowest bid prices) creates strong incentive for the holder to convert and sell shares, potentially pressuring the stock price. Watch for any subsequent financings that could signal worsening cash position.
Price Chart
Executive Summary
Liberty Star Uranium & Metals Corp. issued a $95,700 convertible promissory note to Monroe Street Capital Partners LP, receiving net proceeds of approximately $75,280 after fees and original issue discount. The note carries 8% interest, matures in 12 months, and is convertible into common stock at 75% of the average of the three lowest closing bid prices over the prior 10 trading days, creating significant potential dilution for existing shareholders.
Key Facts
- Issued $95,700 convertible promissory note to Monroe Street Capital Partners LP on September 24, 2026
- Net proceeds to company: approximately $75,280 ($87,000 purchase price minus $6,500 legal fees and $5,220 placement agent fees)
- Note includes 10% original issue discount ($8,700) and carries 8% annual interest
- Conversion price set at 75% of the average of the three lowest closing bid prices over the prior 10 trading days
- Company must reserve at least 21,000,000 shares for conversion, representing ~17% of current outstanding shares
- Maturity date is 12 months from September 21, 2026
- Default interest rate of 22% per annum; default triggers 150% acceleration penalty
- Company has 121,324,060 common shares outstanding as of September 18, 2026
Financial Impact
Small $95,700 convertible note with highly dilutive conversion terms; net proceeds of ~$75,280 after fees and OID
Risk Factors
- Highly dilutive conversion terms could lead to significant shareholder dilution if Monroe Street converts aggressively
- Small net proceeds (~$75K) suggest limited working capital runway, increasing risk of additional dilutive financings
- Unsecured note with default acceleration at 150% penalty creates financial pressure on company's financial position
- Company trades on OTCQB with limited liquidity, making conversion-related selling pressure more impactful
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-044714 |
| Exhibit: ex3-89.htm | 0001493152-26-044714 |
| Document: form8-k.htm | 0001493152-26-044714 |
| Document: 0001493152-26-044714-index-headers.html | 0001493152-26-044714 |
| Document: 0001493152-26-044714-index.html | 0001493152-26-044714 |
| Document: 0001493152-26-044714.txt | 0001493152-26-044714 |
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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