Street Calls of the Week
Investing.com -- GlucoTrack Inc (NASDAQ:GTRK) stock fell 17% Monday after the company announced it entered into a convertible note agreement with an investor for $3.6 million in principal value.
The company issued the convertible promissory note on September 12, 2025, receiving $3 million in proceeds with a $600,000 original issue discount. The unsecured note bears no interest and matures in 12 months or upon closing of a qualified financing event, whichever comes first.
According to the agreement, the note can convert into equity securities if the company completes a qualified financing of at least $5 million. The conversion price would match the financing terms but cannot be lower than $4.87 per share of common stock.
GlucoTrack also disclosed that it must use proceeds from its recently established equity line of credit with Sixth Borough Capital Fund to repay the note. The company must apply 100% of net proceeds from this arrangement toward note repayment until stockholder approval is obtained for issuing shares beyond the "Exchange Cap," after which 50% of proceeds must go toward repayment.
The note was issued through a private placement under Section 4(a)(2) of the Securities Act, which provides exemption for transactions not involving public offerings.
This financing move comes just one day after GlucoTrack established a $20 million equity line of credit with Sixth Borough Capital on September 11, 2025.
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