Socket Mobile Secures $0.5M 10% Convertible Note Financing Due 2029
Socket Mobile completed a $0.5 million secured subordinated convertible note financing due March 27, 2029, carrying a 10% annual interest rate payable quarterly. Notes convert into common stock at $0.90 per share, are secured by company assets and rank behind its Western Alliance Bank debt.
1. Financing Terms
Socket Mobile raised $0.5 million through secured subordinated convertible notes that mature on March 27, 2029, with a 10% annual interest rate payable quarterly in cash.
2. Conversion Features
Holders may convert the principal amount and accrued interest into common stock at $0.90 per share, reflecting the March 27, 2026 closing price on Nasdaq Capital Market.
3. Security and Priority
The notes are backed by the company’s assets and are subordinated to its senior debt with Western Alliance Bank, placing them lower in repayment priority.
4. Related-Party Participation
Charlie Bass, Chairman of Socket Mobile’s Board of Directors, is the participating noteholder, indicating management’s direct involvement in bolstering the company’s working capital.