Key Highlights

  • The financing includes a one-time 15% interest charge, with additional penalties for delayed payments.
  • The conversion price is calculated at a steep discount to recent market prices.
  • The agreement restricts the investor and its affiliates from owning more than 4.99% of the company’s outstanding shares.

Funding Deal Announced

Edgemode, Inc. (OTC: EDGM) has finalized a financing arrangement that provides $100,000 in working capital. The deal, completed on July 8, 2026, involves an accredited investor and is structured to support the company’s operational needs. The terms include a promissory note issued at a discount to its face value.

Note Structure and Costs

The financing is based on a promissory note with a principal amount of $129,600, though Edgemode received only $100,000 after fees. An additional $8,000 was paid by the company to cover transaction-related expenses. The note carries a one-time 15% interest charge, with provisions for a higher rate if payments are not made on schedule.

Repayment Schedule

The repayment plan requires Edgemode to make four payments starting in early 2027. The first installment of $74,520 is due on January 15, 2027, followed by three equal payments of $24,840 on February 15, March 15, and April 15, 2027. The final payment aligns with the note’s maturity date.

Conversion Terms

The note may be converted into common stock under certain conditions, such as a default. The conversion price is determined using a formula that applies a substantial discount to the market price over a defined period. This structure allows the investor to benefit from potential equity appreciation while managing dilution risks for existing shareholders.

Ownership Limits

To maintain compliance with regulatory and governance considerations, the agreement includes a restriction preventing the investor and its affiliates from holding more than 4.99% of Edgemode’s outstanding shares. This provision helps avoid triggering control-related requirements while preserving the company’s shareholder structure.

Regulatory Compliance

The transaction was conducted under a private placement framework, allowing Edgemode to issue the note without SEC registration. The investor meets the criteria for accredited status, ensuring compliance with applicable securities regulations. The agreement also reflects ongoing obligations under relevant financial reporting laws.

Default Triggers

The note outlines standard default conditions, including missed payments, failure to meet regulatory filings, or operational disruptions. If a default occurs, the investor gains the right to convert the note into equity at the pre-established discount. This mechanism serves as both a protective measure for the investor and an incentive for Edgemode to meet its obligations.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.