CDT Equity taps $1.1M convertible note in quick re-raise

What's the deal? CDT EquityDealroom has a profile for this one. Try Dealroom → (NASDAQ: CDT) has drawn a second funding tranche of $1,133,300 in net proceeds under an Amended and Restated Loan Agreement backed by a senior secured convertible note. The company disclosed the deal in a Form 8-K, citing an agreement dated June 30, 2026.

Why now? The financing follows quickly on an earlier tranche, marking a rapid return to the well. Access to the funds hinges on strict conditions, including timely SEC filings and a Delaware good standing certificate.

What's the endgame? The note converts into CDT common stock at a defined conversion price, giving the lender a path to equity. If proceeds from share sales fall short of a set "Make-Whole Amount," CDT must cover the gap in cash or additional shares.

What could go wrong? The agreement carries tight covenants: CDT cannot pay dividends, issue shares, or take on new debt without lender approval, and missed SEC deadlines or a Nasdaq delisting would trigger default. On an uncured default, the lender may convert the balance at the greater of 70% of the floor price or another threshold — a discount that could dilute shareholders.

CDT must also register 200% of the maximum conversion shares and 100% of the warrant shares for resale within 45 days of closing, under a Registration Rights Agreement.

The signal: Convertible notes with make-whole floors and heavy covenants are a common lifeline for small-cap issuers short on other options. For CDT, the structure secures cash but leaves shareholders exposed to dilution if the stock slides.

Read more: Minichart