CDT Equity taps J.J. Astor for $6.75M convertible note
What's the deal? Nasdaq-listed CDT EquityDealroom has a profile for this one. Try Dealroom → has issued a senior secured convertible promissory note worth $6,750,000 to J.J. Astor & Co.Dealroom has a profile for this one. Try Dealroom → The company disclosed the transaction in a Form 8-K filed on October 13, 2026, covering a note issued on October 6.
How is it structured? The note funds in two tranches and matures March 24, 2027. The first tranche delivered net proceeds of $2,869,850 to CDT Equity — $3 million gross against $4.05 million of principal, after closing fees.
What about the rest? A second tranche of $2 million, against $2.7 million of principal, hinges on conditions including stockholder approval, a resale registration statement, no default, and a closing bid of at least $3.00 across five trading days before the second closing, due by December 31, 2026.
Repayment terms: CDT Equity will repay in 24 weekly installments of $168,750 each, starting October 14, 2026. The amount rises if the second tranche funds.
The fine print: The note carries 225,000 warrants exercisable at $0.9177, expiring in five years. Conversion is set at the greater of 70% of the lowest closing price over 20 trading days or a floor of $0.18354. The lender's conversions are capped at 4.99% beneficial ownership, with the option to raise the limit to 9.99% or 19.99%.
Why now? The note builds on a Loan Agreement first signed June 11, 2026, and amends an earlier convertible note from the same date, resetting its floor price. It is secured by a first priority lien on the collateral of CDT Equity and its subsidiary guarantor, CDT Equity Ltd.
What could go wrong? The structure ties CDT Equity's cash tightly to the lender: 80% of net proceeds from its at-the-market offering with A.G.P./Alliance Global PartnersDealroom has a profile for this one. Try Dealroom → must go first toward repaying the note. Issuance of conversion and warrant shares also requires stockholder approval under Nasdaq rules, with a meeting set for no later than November 13, 2026.
The signal: The financing stacks fresh capital on an existing credit line while handing the lender security, conversion rights, and first claim on equity proceeds. For a small-cap issuer, that trade — near-term cash for aggressive repayment terms and potential dilution — reflects how tight the financing window has become for companies below the $3.00 threshold the deal itself references.
Read more: kalkine.com
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