Azio AI signs $3.5 million standby equity purchase deal with YA II PN
AZIO•Azio AI Holdings entered a standby equity purchase agreement with YA II PN on Sept. 25, 2026, receiving $3.5 million through convertible notes and access to up to $50 million in stock purchases.
1. Convertible note funding
The investor advanced $3.5 million through two-tranche convertible promissory notes. Of that amount, $3 million was funded immediately, while $500,000 is tied to the effectiveness of a resale registration statement. The notes carry 6% interest, rising to 18% upon an event of default, and mature Sept. 25, 2027, with an extension option for the investor.
2. Equity purchase terms
The agreement gives Azio AI access to up to $50 million of common stock purchases, subject to Nasdaq issuance caps and a 4.99% ownership limit. The company also issued warrants for 1,735,758 shares at $0.01 and paid a $50,000 structuring fee from the initial proceeds.
