Monitor the stock price closely — if SCTH trades near or below the conversion price threshold, the holder may begin converting, flooding the market with shares at a deep discount. The company's ability to prepay within 180 days is the only escape valve; failure to do so likely leads to significant dilution. Also watch for any additional tranche funding announcements.
Price Chart
Executive Summary
SecureTech Innovations issued a convertible promissory note to Hinterland Partners LLC for up to $10M principal ($9M purchase price, reflecting $1M OID). The first tranche of $388,889 principal ($350K purchase price) was funded on October 16, 2026, with net proceeds of $293K after fees. The note is convertible at 60% of the lowest VWAP over the prior 15 trading days, creating severe potential dilution for existing shareholders.
Key Financial Metrics
Key Facts
- Convertible note up to $10M principal ($9M purchase price) with $1M original issue discount
- First tranche funded: $388,889 principal ($350K purchase price) on October 16, 2026
- Net proceeds to SecureTech: $293,000 after $24,500 placement agent fee, $10K legal/due diligence, and $22.5K for a separate potential financing
- Conversion price: 60% of lowest traded price over prior 15 trading days — deeply dilutive
- Holder (Hinterland Partners) is not obligated to fund any additional tranches beyond the first
- Prepayment allowed only within first 180 days at 100% of principal plus accrued interest; no prepayment after that period
- Maturity: 12 months from each funding date (first tranche matures October 16, 2027)
- Default interest: 18% per annum; default triggers 125% of outstanding principal plus interest
- Beneficial ownership limitation: 4.99% for the holder
Financial Impact
Immediate net cash inflow of $293K; potential dilution from conversion at 60% of market price could be massive relative to 17.1M shares outstanding
Risk Factors
- Severe dilution risk: conversion at 60% of market price could massively increase share count
- Holder has no obligation to fund additional tranches — only $293K net cash raised, which may be insufficient for working capital needs
- Default triggers 125% acceleration and 18% interest — high cost of distress
- Unsecured note ranks behind secured creditors
- Company's ability to prepay within 180 days is uncertain given only $293K net proceeds
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001017386-26-000144 |
| Exhibit: ex41.htm | 0001017386-26-000144 |
| Document: scth_form8k10212026.htm | 0001017386-26-000144 |
| Document: 0001017386-26-000144-index-headers.html | 0001017386-26-000144 |
| Document: 0001017386-26-000144-index.html | 0001017386-26-000144 |
| Document: 0001017386-26-000144.txt | 0001017386-26-000144 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $17.43 | awaiting T+20 | — | $20.10 (−15.32%) |
Sep 23, 2026 4w ago | 10-K/A | $18.70 $17.49 | ▲ +6.47% | ▲ +7.16% | $20.10 (−7.49%) |
Aug 17, 2026 10w ago | 8-K | $22.48 $21.50 | ▼ −4.34% | ▼ −2.81% | $20.10 (−10.57%) |
Aug 5, 2026 11w ago | 10-Q/A | $23.10 $19.50 | ▲ +15.58% | ▲ +16.18% | $20.10 (+12.99%) |
Aug 5, 2026 11w ago | 10-Q/A | $23.10 $19.50 | ▲ +15.58% | ▲ +16.18% | $20.10 (+12.99%) |
Aug 5, 2026 11w ago | 8-K | $23.10 $19.50 | ▲ +15.58% | ▲ +16.18% | $20.10 (+12.99%) |
Jun 10, 2026 19w ago | 8-K | $7.24 $19.97 | ▲ +175.83% | ▲ +171.94% | $20.10 (+177.62%) |
May 12, 2026 23w ago | 8-K | $4.50 $7.66 | ▼ −70.22% | ▼ −70.84% | $20.10 (−346.67%) |
Apr 16, 2026 27w ago | 8-K | $4.50 $4.50 | · 0.00% | ▼ −5.82% | $20.10 (+346.67%) |
Apr 10, 2026 28w ago | 8-K | $4.50 $4.50 | · 0.00% | ▼ −7.73% | $20.10 (+346.67%) |
US Market Status
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