Liberty Star issues $73,700 convertible note
Liberty Star Uranium & Metals Corp. entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC, under which it issued a convertible promissory note with an aggregate principal amount of $73,700.
Rhea-AI Filing Summary
Liberty Star Uranium & Metals Corp. entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC, under which it issued a convertible promissory note with an aggregate principal amount of $73,700.
The note, dated June 11, 2026, carries interest at 8% with a 10% original issue discount and matures on March 15, 2027. Principal and accrued interest can be converted into shares of Liberty Star’s common stock under the terms specified in the note.
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8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Convertible note principal: $73,700
Interest rate: 8%
Original Issue Discount: 10%
+2 more
5 metrics
Convertible note principal
$73,700
Aggregate principal amount of note issued to 1800 Diagonal
Interest rate
8%
Stated annual interest on the convertible promissory note
Original Issue Discount
10%
Discount applied to the note at issuance
Maturity date
March 15, 2027
Date when the convertible promissory note matures
Note issue date
June 11, 2026
Effective date of the convertible promissory note
Key Terms
Securities Purchase Agreement, convertible promissory note, Original Issue Discount, Material Definitive Agreement, +1 more
5 terms
Securities Purchase Agreement financial
"entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with 1800 Diagonal Lending LLC"
A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.
convertible promissory note financial
"agreed to issue a convertible promissory note (the “Note”) to 1800 Diagonal"
A convertible promissory note is a loan a company takes now that can later be turned into shares instead of being repaid in cash. Think of it as lending money with the option to accept ownership in the business down the road; that matters to investors because it affects who gets paid first, how much ownership existing shareholders keep, and the company’s future valuation and cash needs. Terms such as conversion price, interest and maturity determine the financial impact.
Original Issue Discount financial
"The Note bears interest at 8%, with a 10% Original Issue Discount and matures"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
Material Definitive Agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Emerging growth company regulatory
"Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What financing agreement did Liberty Star Uranium & Metals Corp. (LBSR) enter on June 15, 2026?
Liberty Star Uranium & Metals Corp. entered a Securities Purchase Agreement with 1800 Diagonal Lending LLC. Under it, the company issued a convertible promissory note, providing short-term financing that can later convert into common stock based on the note’s terms.
What are the key terms of Liberty Star (LBSR)’s $73,700 convertible promissory note?
The note has an aggregate principal of $73,700, bears 8% interest, and includes a 10% Original Issue Discount. It matures on March 15, 2027, and both principal and accrued interest are convertible into shares of Liberty Star’s common stock.
When does Liberty Star (LBSR)’s convertible note issued to 1800 Diagonal Lending LLC mature?
The convertible promissory note issued to 1800 Diagonal Lending LLC matures on March 15, 2027. Until maturity, it accrues 8% interest and may be converted into Liberty Star common shares as outlined in the note’s conversion provisions.
Who is the lender in Liberty Star Uranium & Metals Corp. (LBSR)’s new convertible note financing?
The lender is 1800 Diagonal Lending LLC, which entered into a Securities Purchase Agreement with Liberty Star. In connection with this agreement, 1800 Diagonal received a convertible promissory note with defined interest, discount, maturity, and stock-conversion features.
How does the convertible note affect Liberty Star (LBSR)’s potential equity structure?
The note allows outstanding principal and accrued interest to be converted into Liberty Star common stock. This creates the possibility of future share issuance to 1800 Diagonal Lending LLC, depending on how much of the note is converted rather than repaid in cash.
AI-generated analysis. How Rhea-AI works. Not financial advice.
