Loan & DebtOct 5, 2026, 05:06 PM
Fathom Holdings Extends Note Maturity, Cuts Conversion Price; Terminates Merger
AI Summary
Fathom Holdings Inc. (FTHM) announced a Second Omnibus Amendment to its Senior Secured Convertible Promissory Notes, extending the maturity date to November 1, 2026, and significantly reducing the conversion price to $0.65 per share. The interest rate has been increased to 18% per annum. Concurrently, Fathom and Neighborhood Intelligence, Inc. (NXH) mutually terminated their previously announced merger agreement, citing current valuations not reflecting fair value. Both companies will remain independent but plan to explore strategic collaborations, including data sharing.
Key Highlights
- Maturity date of Senior Secured Convertible Promissory Notes extended from October 1, 2026 to November 1, 2026.
- Conversion price of the Notes reduced from $4.25 to $0.65 per share.
- Interest rate on outstanding principal increased to 18% per annum.
- Company may not issue shares exceeding 19.99% of outstanding stock as of October 1, 2026.
- Merger agreement with Neighborhood Intelligence, Inc. (NXH) terminated; neither party owes a termination fee.
- Company to reimburse holders for legal fees up to $5,000 related to the Second Amendment.
Price Impact
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