Liberty Star Uranium & Metals (LBSR) sells $73,700 convertible note due 2027
Rhea-AI Filing Summary
Liberty Star Uranium & Metals Corp. entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC on August 11, 2026, under which it agreed to issue a convertible promissory note with an aggregate principal amount of $73,700.
The note, issued effective August 12, 2026, bears 8% interest, includes a 10% Original Issue Discount, and matures on May 30, 2027. Outstanding principal and accrued interest are convertible into shares of Liberty Star’s common stock pursuant to the note’s terms, creating a direct financial obligation for the company.
Positive
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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, and exhibit attachments filed with this report.
Key Figures
Convertible note principal: $73,700
Interest rate: 8%
Original Issue Discount: 10%
+3 more
6 metrics
Convertible note principal
$73,700
Aggregate principal amount of the convertible promissory note issued to 1800 Diagonal Lending LLC
Interest rate
8%
Annual interest rate on the convertible promissory note
Original Issue Discount
10%
Discount applied to the note’s issuance relative to its $73,700 principal
Maturity date
May 30, 2027
Scheduled maturity of the convertible promissory note
Agreement date
August 11, 2026
Date of the Securities Purchase Agreement with 1800 Diagonal Lending LLC
Note issuance effective date
August 12, 2026
Effective date on which the note was issued to 1800 Diagonal Lending LLC
Key Terms
Securities Purchase Agreement, convertible promissory note, Original Issue Discount, Emerging growth company, +1 more
5 terms
Securities Purchase Agreement financial
"entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with 1800 Diagonal"
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.
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.
direct financial obligation financial
"Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet"
FAQ
What financing did Liberty Star Uranium & Metals (LBSR) enter into on August 11, 2026?
Liberty Star entered into a Securities Purchase Agreement with 1800 Diagonal Lending LLC for a $73,700 convertible promissory note. The note provides funding while allowing 1800 Diagonal to convert principal and interest into common stock under specified terms.
What are the key terms of Liberty Star’s (LBSR) new convertible promissory note?
The note has a $73,700 principal amount, bears 8% interest, carries a 10% Original Issue Discount, and matures May 30, 2027. Principal and accrued interest are convertible into Liberty Star common shares as described in the note.
When does Liberty Star’s (LBSR) convertible note issued to 1800 Diagonal mature?
The convertible promissory note issued to 1800 Diagonal Lending LLC matures on May 30, 2027. Until maturity, it accrues 8% interest, and the outstanding principal and interest may be converted into Liberty Star common stock under the note’s conversion provisions.
Who is the counterparty to Liberty Star’s (LBSR) 2026 convertible note financing?
The counterparty is 1800 Diagonal Lending LLC. Liberty Star agreed to issue, and on August 12, 2026 did issue, a $73,700 convertible promissory note to 1800 Diagonal under a Securities Purchase Agreement dated August 11, 2026.
How does the Liberty Star (LBSR) note’s Original Issue Discount affect the financing?
The note includes a 10% Original Issue Discount, meaning Liberty Star incurs a $73,700 principal obligation but receives proceeds reduced by that discount. The full principal plus accrued interest remains subject to conversion into common stock under the note’s terms.
AI-generated analysis. How Rhea-AI works. Not financial advice.
