STOCK TITAN

Convertible note funding brings Picard Medical (PMI) $490K cash

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Picard Medical, Inc. entered into a securities purchase agreement with Quick Capital, LLC for a convertible promissory note with a principal amount of $555,555.56 and 80,128 origination shares of common stock. The note carries a one-time 12% interest charge of $66,666.67 and was issued with a $55,555.56 original issue discount, providing $500,000 of funded amount and $490,000 of cash proceeds after $10,000 of buyer expenses.

The note matures nine months after its April 7, 2026 issue date and is scheduled to be repaid in six equal monthly installments of $103,703.70 from July 1, 2026 through December 1, 2026. Following an event of default, the buyer may convert outstanding amounts into common stock at 75% of the lowest trading price over the prior ten trading days, subject to a 4.99% beneficial ownership limitation. The securities are being issued in a private offering relying on Section 4(a)(2) and/or Regulation D exemptions.

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Insights

Picard Medical secures $490K cash via a short-term, high-cost convertible note with default-based equity conversion.

Picard Medical arranged a financing with Quick Capital, LLC using a convertible promissory note carrying a principal of $555,555.56 and a one-time interest charge of $66,666.67. Due to a original issue discount of $55,555.56 and $10,000 of buyer expenses, the company receives $490,000.00 in cash.

The note matures nine months after the April 7, 2026 issue date and is repaid in six monthly installments of $103,703.70 from July 1, 2026 through December 1, 2026. Upon an event of default, the payoff amount increases up to 150% of outstanding principal, plus other amounts, with a 200% cumulative cap.

Only after an event of default and while it continues, the buyer may convert principal and interest into common stock at a 25% discount to the lowest trading price over the prior ten trading days, subject to a 4.99% beneficial ownership limitation. The transaction is structured as an unregistered private placement under Section 4(a)(2) and Regulation D.

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 3.02 Unregistered Sales of Equity Securities Securities
The company sold equity securities in a private placement or other unregistered transaction.
Item 3.03 Material Modification to Rights of Security Holders Securities
A change was made that materially affects the rights of existing shareholders (e.g., dividend rights, voting rights).
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Note principal $555,555.56 Convertible promissory note principal amount
Original issue discount $55,555.56 Discount applied to note at issuance
Funded amount $500,000.00 Aggregate funded amount from the note
Cash proceeds $490,000.00 Cash delivered to company after buyer expenses
One-time interest charge $66,666.67 12% interest applied on April 7, 2026
Monthly installment $103,703.70 Six equal payments from July 1 to December 1, 2026
Origination shares 80,128 shares Common stock issued as origination shares
Default conversion discount 75% of lowest price Conversion price vs. lowest trading price over ten days
convertible promissory note financial
"for the issuance and sale of a convertible promissory note in the principal face amount"
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 was issued with an original issue discount of $55,555.56"
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.
accredited investor financial
"Quick Capital, LLC, a Wyoming limited liability company (the “Buyer”), an accredited investor"
An accredited investor is an individual or entity that meets certain financial criteria, such as having a high income or significant net worth, allowing them to invest in private or less regulated investment opportunities. This status matters because it grants access to investments that are often riskier or less available to the general public, reflecting a higher level of financial knowledge or resources.
beneficial ownership limitation financial
"subject to a 4.99% beneficial ownership limitation"
A beneficial ownership limitation is a rule that caps the percentage of a company’s shares an investor can be treated as owning or controlling for voting, regulatory or tax purposes. It matters to investors because it can restrict how many shares a person or group can buy or vote, affect takeover chances, and influence share liquidity and value — like a speed limit that prevents any single driver from taking over the whole road.
Regulation D regulatory
"in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and/or Regulation D promulgated thereunder"
Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.
Event of Default financial
"Upon the occurrence and during any continuation of any Event of Default (as defined in the Note)"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): April 7, 2026

 

Picard Medical, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   001-42801   86-3212894

(State or other jurisdiction

of incorporation)

  (Commission
File Number)
 

(IRS Employer

Identification No.)

 

1992 E Silverlake
Tucson AZ, 85713
(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: (520) 545-1234

 

Not Applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.0001 per share   PMI   The NYSE American, LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On April 7, 2026, Picard Medical, Inc. (the “Company”) entered into a securities purchase agreement (the “Purchase Agreement”) with Quick Capital, LLC, a Wyoming limited liability company (the “Buyer”), an accredited investor, for the issuance and sale of a convertible promissory note in the principal face amount of $555,555.56 (the “Note”) and 80,128 shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), as origination shares (the “Origination Shares”). The Note was issued with an original issue discount of $55,555.56, resulting in an aggregate funded amount of $500,000.00. The cash consideration delivered to the Company at the closing was $490,000.00, after giving effect to the original issue discount and $10,000.00 withheld and directed for the Buyer’s expenses.

 

The Note bears a one-time interest charge of twelve percent, or $66,666.67, that is applied on the date of issuance, April 7, 2026 (the “Issue Date”). The Note matures nine (9) months from the Issue Date and shall be repaid in six (6) equal monthly installments of $103,703.70, commencing on July 1, 2026, and continuing on the first day of each month thereafter through December 1, 2026.

 

Upon the occurrence and during any continuation of any Event of Default (as defined in the Note), the Note shall accrue an interest charge at a rate equal to the lesser of 20% on the principal amount of the Note or the maximum rate of interest under applicable law. Upon the occurrence and during any continuation of an Event of Default, the Note becomes immediately due and payable in an amount equal to 150% of the then outstanding principal, plus accrued and unpaid interest and other amounts owed, subject to a cumulative maximum of 200% of such amounts. In addition, only upon an Event of Default and during any continuation thereof, the Buyer may elect to convert all or any part of the outstanding principal and interest on the Note in fully paid and non-assessable shares of the Company’s Common Stock at a conversion price per share equal to 75% of the lowest trading price of the Common Stock for the ten (10) trading days prior to the date of conversion, subject to a 4.99% beneficial ownership limitation.

 

The issuance of the Note, the Origination Shares and the shares of Common Stock issuable upon conversion of the Note will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The Note, the Origination Shares and the shares of Common Stock, if issued, will be issued in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and/or Regulation D promulgated thereunder.

 

The Note and the Purchase Agreement contain standard and customary representations and warranties, agreements and obligations, and events of default. The foregoing descriptions of terms and conditions of the Purchase Agreement and the Note do not purport to be complete and are qualified in their entirety by the full text of the form of the Purchase Agreement and the Note, which are attached hereto as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

 

This Current Report on Form 8-K does not constitute an offer to sell the securities or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

 

Item 2.03  Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The information contained above in Item 1.01 regarding the Note and Purchase Agreement is hereby incorporated by reference into this Item 2.03.

 

Item 3.02 Unregistered Sale of Equity Securities.

 

The information contained above in Item 1.01 regarding the Note and Purchase Agreement is hereby incorporated by reference into this Item 3.02.

 

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Item 3.03Material Modification to Rights of Security Holders.

 

So long as the Company have any obligation under this Note, the Company shall not, without the Buyer’s written consent, (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Company’s disinterested directors.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)Exhibits

 

The following exhibits are being filed herewith:

 

Exhibit No.   Description
4.1   Convertible Promissory Note, dated as of April 7, 2026, issued by the Company in favor of the Buyer.
10.1   Securities Purchase Agreement, dated April 7, 2026, by and between the Company and the Buyer.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Picard Medical, Inc.  
   
By: /s/ Patrick NJ Schnegelsberg  
  Name: Patrick NJ Schnegelsberg  
  Title: Chief Executive Officer  

 

Dated: April 13, 2026

 

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FAQ

What type of financing did Picard Medical (PMI) enter on April 7, 2026?

Picard Medical entered a securities purchase agreement with Quick Capital, LLC for a convertible promissory note and 80,128 origination shares. The note has a principal of $555,555.56 and was issued in a private, unregistered offering relying on Section 4(a)(2) and/or Regulation D exemptions.

How much cash does Picard Medical (PMI) receive from the new note?

Picard Medical receives $490,000.00 in cash from the financing. The note’s principal is $555,555.56, but a $55,555.56 original issue discount and $10,000.00 withheld for the buyer’s expenses reduce the funded amount to $500,000.00 and the cash delivered to $490,000.00.

What are the key terms and repayment schedule of Picard Medical’s new note?

The note matures nine months after its April 7, 2026 issue date and carries a one-time 12% interest charge of $66,666.67. It is scheduled to be repaid in six equal monthly installments of $103,703.70 from July 1, 2026 through December 1, 2026, unless accelerated after an event of default.

When and how can Picard Medical’s new note convert into common stock?

Conversion is only available upon an event of default and during its continuation. In that case, the buyer may convert outstanding principal and interest into fully paid common shares at 75% of the lowest trading price over the prior ten trading days, subject to a 4.99% beneficial ownership limitation.

How are the securities in Picard Medical’s financing being issued under U.S. securities laws?

The note, origination shares, and any conversion shares will not be registered under the Securities Act or state laws. They are being issued in reliance on exemptions from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.

What happens to Picard Medical’s obligations if an event of default occurs under the new note?

If an event of default occurs and continues, the note becomes immediately due and payable at 150% of outstanding principal plus accrued interest and other amounts, subject to a cumulative maximum of 200%. During this period, the buyer may also elect equity conversion at the contractual discounted price.

Filing Exhibits & Attachments

5 documents