T3 Defense raises $10M in second tranche of convertible preferred sale
What's the deal? T3 DefenseDealroom has a profile for this one. Try Dealroom →, a Nasdaq-listed company (DFNS), closed a $10 million private placement of Series B convertible preferred stock to a single accredited investor on October 22, 2026. It sold 200 units at $50,000 each, with each unit pairing one preferred share and warrants to buy up to 14,851 common shares.
Where it ranks: The $10 million raise sits at just the 11th percentile for deals of its kind, placing it well below the typical convertible financing by size.
Why now? The sale appears to be the second tranche of a $20 million private placement first struck in February 2026, conditioned on registration, shareholder approval, and market-price thresholds. It also follows liquidity pressure: T3 reported $4.1 million in cash at June 30 and $9.8 million of operating cash outflow in the first half.
Follow the money: T3 received net proceeds of just $6,605,000. The gap reflects repayment of principal and interest on a term note dated September 8, 2026, owed to the investor, plus a 3.5% cash fee to placement agent Dawson James SecuritiesDealroom has a profile for this one. Try Dealroom →.
What could go wrong? The convertible shares and warrants carry dilution risk. T3 had 3,250,296 shares outstanding as of September 30, 2026, and has separately registered up to 10 million shares for resale under an equity line — a block representing roughly 75% of its outstanding stock on issuance.
The signal: For a company managing substantial doubt about its ability to continue operating, this is less a growth round than a liquidity event. The structure — convertibles, warrants, an equity line, and note repayment baked into proceeds — shows how thinly capitalised small-cap issuers stitch together cash when options run short.
Read more: kalkine.com
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