The lenders get shares or they get their money back. There is no other outcome.
On August 19, Dror Ortho-Design signed a securities purchase agreement and took in $275,000 from private investors. The money came in the form of debentures — short-term debt that carries no interest and matures on October 19, 2026. Whether those debentures ever convert into stock depends entirely on something that has not happened yet.
The structure is tied to a public offering the company is working toward. If that offering closes before the maturity date, the $275,000 converts into shares at whatever price public investors pay — and the debenture holders receive the same warrants and registration rights as everyone else in that offering. If the offering does not close in time, the company owes the principal in cash on October 19. Holders can extend that deadline in 60-day increments by giving written notice, but the company cannot compel them to do so.
An S-1 registration statement filed with the SEC shows the company is pursuing a listing on Nasdaq. Dror, which operates from Jerusalem, received FDA clearance in February 2026 for its ZSmile aligner platform, according to a company announcement on GlobeNewswire. The company trades on OTC Pink under the symbol DROR.
Warrants are also part of the August 19 deal, but they exist only if the public offering closes. Their number and exercise price are both determined by terms that do not yet exist — the offering has not been priced. Without the offering, the warrants are never issued.
Until the debentures are paid off or converted, the company cannot take on significant new debt, cannot pay dividends, and cannot sell assets outside of ordinary inventory. A default — including failure to repay on the maturity date — lets the holders demand immediate repayment of the full principal.
October 19 is now the date everything runs toward.