CDT Equity Inc. — Form 8-K
Filed October 13, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 92/100
What the filing says
CDT Equity Inc. (market cap ~$55K) issued a $6.75M Senior Secured Convertible Note to J.J. Astor Co. on October 6, 2026, funded in two tranches ($3M immediately, $2M conditional). The note converts at 70% of 20-day VWAP or a Floor Price of $0.18354, with 225,000 warrant shares at $0.9177 exercise price. Critically, 80% of all ATM financing net proceeds must flow to Astor until both this note and the existing $2.68M note are paid; weekly installments of $168,750 begin October 14, 2026, maturing March 24, 2027. Failure to maintain Nasdaq listing ($1.00+ bid) triggers mandatory reverse splits up to 1-for-1,000 ratio.
Why this rating
At $55K market cap, $6.75M new debt is 122x company size—existential leverage. Mandatory ATM waterfall diverts 80% of all equity raises to lender until paid off, preventing capital raising for operations. Conversion at depressed floors plus warrant dilution creates massive shareholder dilution. Forced reverse splits threaten Nasdaq listing and further dilute shareholders. Forbearance on existing note defaults masks underlying insolvency risk.
Tradability signal
NO TRADE
No trade: price $0.00 is below our $0.5 floor — spreads at this level eat any edge. (Filing arrived outside market hours — evaluated at the next open with a live quote.)
Derived from this site's own measured outcomes + live price/liquidity at analysis time. An experiment, not investment advice.
Price action (we called it negative)
at our read · unknown $0.00 | +10 min · unknown $0.00 ▲ 0.00% | +30 min · unknown $0.00 ▲ 0.00% | +1 hr · unknown $0.00 ▲ 0.00% | +4 hrs · unknown $0.01 ▲ 166.67% |
Quotes via Yahoo Finance at capture time; for filings arriving outside market hours the clock starts at the next open. Not investment advice. How accurate are our calls? →
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