Loan & DebtMay 14, 2026, 06:06 AM
FingerMotion Secures $5M Senior Secured Convertible Note
AI Summary
FingerMotion, Inc. has secured $5,000,000 in financing through a senior secured convertible note with an institutional investor. The company received $3,300,000 at closing, with an additional $1,000,000 to be released upon the SEC declaring effective a resale registration statement. The note, maturing on May 13, 2027, is convertible into common stock at an initial fixed price of $0.94 per share, with a variable monthly conversion price and various default provisions. The agreement also includes an exchange cap of 12,256,260 shares without stockholder approval.
Key Highlights
- FingerMotion, Inc. entered into a securities purchase agreement for a senior secured convertible note with an institutional investor.
- The note has an original principal amount of $5,000,000 and an original issue discount of $700,000.
- The Company received $3,300,000 at closing, with an additional $1,000,000 contingent on SEC registration statement effectiveness.
- The note matures on May 13, 2027, and bears no interest except upon an event of default (12% per annum).
- It is convertible into common stock at an initial fixed conversion price of $0.94 per share.
- Monthly conversion is possible at a Redemption Conversion Price, which is the lower of the fixed price or 90% of the lowest 7-day VWAP, subject to a floor price.
- Upon an event of default, the note becomes due and payable at 125% of the outstanding principal amount.
- The Company has an optional redemption right at 115% of the outstanding value after 40 trading days post-registration statement effectiveness.
Price Impact
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