This ELOC provides a capital runway but at extreme dilutive cost. The stock will likely trade down as the market prices in the overhang of potential future issuances at a discount. Monitor the registration statement effectiveness (due within ~30 days) as a catalyst for the first put notices. Short-sellers may target MYSZ given the predictable dilutive structure. Any relief rally should be viewed as a selling opportunity given the fundamental structural dilution.
Price Chart
Executive Summary
My Size, Inc. entered into an equity purchase agreement with Square Gate Capital Master Fund, LLC – Series 5, providing the company the right (but not obligation) to sell up to $10,000,000 of common stock over 36 months at a discount to market (96.5% of lowest VWAP for regular puts, 100% of lowest traded price for intraday puts). A $100,000 commitment fee was paid via 269,229 shares issued upfront. The arrangement is a standard toxic/dilutive equity line of credit that will heavily pressure the stock given the company's ~$2M market cap and the massive potential dilution (up to 5x current market cap if fully drawn, soft-capped at ~1.02M shares or 19.99% of outstanding without shareholder approval). This is a bearish signal of financial distress and reliance on dilutive financing.
Key Financial Metrics
Key Facts
- Up to $10,000,000 equity line of credit (ELOC) with Square Gate Capital Master Fund, LLC – Series 5
- Company has right but not obligation to sell common stock over 36 months (thru August 5, 2029)
- Regular put price: 96.5% of lowest daily VWAP during 3-day valuation period
- Intraday put price: 100% of lowest traded price during intraday valuation period
- Commitment fee of $100,000 paid as 269,229 shares issued on Execution Date
- Exchange cap of 1,024,597 shares (19.99% of outstanding) unless stockholder approval obtained or average price ≥ $0.3706/share
- Investor cannot exceed 4.99% beneficial ownership per closing
- Standstill periods restrict other equity issuances during and shortly after puts
- Proceeds will be used for working capital and general corporate purposes
- Company's market cap is ~$2M, making the $10M facility ~5x current market cap
Financial Impact
Up to $10M in potential dilutive equity issuance over 36 months; immediate 269,229 shares issued as commitment fee; company market cap ~$2M
Risk Factors
- Massive potential dilution (~5x current market cap if full $10M drawn)
- Regular put pricing at 96.5% of lowest VWAP will mechanically pressure the stock
- Company restricted from other equity lines during term
- Nasdaq listing compliance risk if stock price continues to decline (penny stock risk)
- No guarantee of actual draws; company may not access capital if conditions not met
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-036211 |
| Exhibit: ex10-2.htm | 0001493152-26-036211 |
| Document: form8-k.htm | 0001493152-26-036211 |
| Document: 0001493152-26-036211-index-headers.html | 0001493152-26-036211 |
| Document: 0001493152-26-036211-index.html | 0001493152-26-036211 |
| Document: 0001493152-26-036211.txt | 0001493152-26-036211 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | S-3 | $0.9321 | awaiting T+20 | — | $1.06 (−13.72%) |
Oct 26, 2026 today | 8-K | $0.9400 | awaiting T+20 | — | $1.06 (−12.77%) |
Oct 20, 2026 6d ago | SC 13G | $1.09 | awaiting T+20 | — | $1.06 (−2.75%) |
Oct 8, 2026 19d ago | EFFECT | $1.35 | awaiting T+20 | — | $1.06 (+21.48%) |
Sep 16, 2026 5w ago | 8-K | $1.97 $1.16 | ▼ −41.12% | ▼ −43.18% | $1.06 (−46.19%) |
Sep 16, 2026 5w ago | Press Release | $1.90 $1.19 | ▲ +37.37% | ▲ +38.57% | $1.06 (+44.21%) |
Aug 14, 2026 10w ago | 8-K | $2.97 $1.66 | ▼ −44.11% | ▼ −42.12% | $1.06 (−64.31%) |
Aug 13, 2026 10w ago | EFFECT | $3.38 $1.73 | ▲ +48.82% | ▲ +47.07% | $1.06 (+68.64%) |
Aug 5, 2026 11w ago | 8-K | $0.3636 $0.2963 | ▲ +18.52% | ▲ +19.12% | $1.06 (−191.53%) |
Jun 2, 2026 21w ago | DEFA14A | $0.5500 $0.4770 | ▼ −13.27% | ▼ −11.71% | $1.06 (+92.73%) |
US Market Status
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