Intrusion buys rest of OW Cyber for $1.3M, funded by costly $1.5M note
What's the deal? Intrusion Inc.Dealroom has a profile for this one. Try Dealroom → (NASDAQ: INTZ) has completed the acquisition of the remaining 40% of OW Cyber, LLCDealroom has a profile for this one. Try Dealroom →, making the cybersecurity firm a wholly-owned subsidiary. The deal closed on August 28, 2026, after shareholders approved it at the company's annual meeting.
The terms: Intrusion paid $1.3 million in cash for the remaining stake. It funded the purchase with a new secured promissory note issued to Streeterville Capital, LLCDealroom has a profile for this one. Try Dealroom →.
The note carries an original principal of $1,615,000 and delivered net proceeds of $1.5 million, after a $105,000 original issue discount and $10,000 in transaction expenses. The remaining balance is earmarked for the OW Cyber purchase and general working capital.
Why now? The move consolidates full ownership of a key asset, giving Intrusion complete control over OW Cyber.
What could go wrong? The financing is expensive. The note pays 7% interest per annum, compounded daily, and matures on August 28, 2028.
If the balance stays outstanding after 90 days, it automatically increases by roughly 17.65%. Combined with the original issue discount and transaction fees, that pushes the effective cost of capital well above the stated 7%.
The note is secured by a first-priority lien on all of Intrusion's assets and intellectual property, and is guaranteed by OW Cyber. The lender may redeem up to $150,000 per month, starting six months after issuance.
The signal: The first-priority claim on all company assets and intellectual property raises the financial risk for existing shareholders. For a small-cap firm, securing an acquisition through high-cost debt underscores the trade-offs of buying growth without cheaper capital on hand.
Read more: minichart.com.sg
Image credit: Idaho National Laboratory
