Monitor for future dividend payment obligations on the new Series D Preferred (15% cumulative rate on $31.6M principal = ~$4.7M annual dividends) and watch for any additional disclosures about why related parties agreed to waive accrued dividends, which could indicate financial stress or complex restructuring.
Price Chart
Executive Summary
Limitless X Holdings Inc. (LIMX) conducted a series of related-party preferred stock exchanges, converting 304,264 shares of Class C Convertible Preferred Stock into 1,264,365 shares of Series D 15% Cumulative Redeemable Perpetual Preferred Stock. The transaction involved three entities controlled by CEO Jaspreet Mathur and effectively restructured the company's preferred capital without new cash inflows or outflows.
Key Financial Metrics
Key Facts
- LIMX exchanged 304,264 Class C Preferred shares for 1,264,365 Series D Preferred shares
- All transactions were with entities controlled by CEO Jaspreet Mathur (EM1 Capital, Amarose Inc., Limitless Performance Inc.)
- The exchange ratio was based on a 30-day weighted average share price of $1.04, with Class C shares valued at $104 each (100x common stock price)
- No cash consideration was paid in the exchange
- Holders waived all accrued and unpaid dividends on the Class C shares
- The Series D Preferred carries a 15% cumulative dividend rate and is perpetual
Financial Impact
Reclassification of $31.6M in preferred equity (304,264 Class C shares × $104 value) into new Series D structure with 15% dividend rate
Risk Factors
- Increased dividend burden from 15% cumulative preferred stock
- Concentration of control with CEO-related entities
- Potential dilution of common shareholders if dividends are paid in stock
- Lack of independent third-party valuation in related-party transaction
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-008243 |
| Exhibit: ex10-2.htm | 0001493152-26-008243 |
| Exhibit: ex10-1.htm | 0001493152-26-008243 |
| Document: form8-k.htm | 0001493152-26-008243 |
| Document: 0001493152-26-008243-index-headers.html | 0001493152-26-008243 |
| Document: 0001493152-26-008243.txt | 0001493152-26-008243 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $0.2490 | awaiting T+20 | — | $0.2490 (−0.00%) |
Feb 27, 2026 34w ago | 8-K | $1.58 $1.25 | ▼ −20.89% | ▼ −13.33% | $0.2490 (−84.24%) |
US Market Status
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