Spectral Medical closes first tranche of $10M convertible note offering
What's the deal? Toronto-based Spectral MedicalDealroom has a profile for this one. Try Dealroom → has closed the first tranche of a US$10.3M convertible unsecured note offering, issuing US$5.65M in notes on October 30, 2026. Pinnacle IslandDealroom has a profile for this one. Try Dealroom → II LP and Paradigm Capital Inc.Dealroom has a profile for this one. Try Dealroom → purchased the first-tranche notes, with Paradigm acting as financial advisor.
What's the company? Spectral is pursuing US FDA approval for Toraymyxin, a hemoperfusion device to treat septic shock patients. The FDA accepted its PMX premarket approval application in June 2026, and the company has reported positive 12-month follow-up from its Tigris trial.
The terms: The five-year notes mature on November 1, 2031, and carry a floating rate of the Canadian Overnight Repo Rate Average plus 800 basis points. Holders can convert at US$0.73 per unit, each unit comprising one common share and half a warrant. A second tranche of US$4.62M is expected to close on or about November 6, 2026.
Why now? The financing lands as Spectral moves from clinical development into regulatory review. Proceeds also address US$9 million in maturing notes: one holder converted US$4.5 million into 13,870,397 common shares, while the company repaid an unconverted US$4.5 million plus interest held by Vantive US Healthcare LLC.
What could go wrong? The notes carry meaningful interest costs and dilution risk, and conversion could add shares at low prices. The deal extends financing for a cash-constrained company, but commercial success still hinges on FDA clearance.
The signal: For Spectral, this is less a growth round than a bridge—capital to carry it through regulatory review and potential commercialisation, while refinancing debt coming due.
Read more: streetinsider.com
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