SecureTech secures up to $10M convertible note, nets just $293K at close
What's the deal? SecureTech InnovationsDealroom has a profile for this one. Try Dealroom → (OTCQB: SCTH) has entered a post-IPO convertible note financing of up to $10 million in principal with Hinterland Partners, the company disclosed in an 8-K filed October 21, 2026. But only the first tranche has been funded: a $350,000 purchase price that yielded SecureTech $293,000 net after fees.
The fine print: The full facility carries an original issue discount of up to $1 million, and additional tranches require mutual agreement. Hinterland is under no obligation to fund beyond the first tranche. The company intends to use the proceeds for business development and general working capital.
What could go wrong? Beginning 180 days after a tranche is funded, Hinterland may convert principal and interest at 60% of SecureTech's lowest traded price over the preceding 15 trading days. That floating discount could issue shares well below market prices, pressuring the stock and diluting existing shareholders.
Why now? SecureTech is under significant financial pressure. It reported $2.23 million in operating cash outflow and $312,000 in cash for the first half of 2026, alongside a going-concern warning.
By the numbers: The deal continues a pattern of discounted convertible borrowing. In May, the company raised $500,000 gross through two notes; a July note reportedly produced about $198,000 net. The first tranche of the new note carries a 6% interest charge of $23,333.33 and matures October 16, 2027.
The signal: The "up to $10 million" headline overstates what SecureTech actually has in hand. For a cash-strained company, the deal is best read as limited, costly liquidity — not a secured funding round.
Read more: minichart.com.sg
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