OTC

otcEdgemode Handed the Lender Shares Before the Loan Was Complete

ClearThink Capital Partners received hundreds of millions of new shares just for agreeing to make the loan. Most of the cash that has arrived since has already been paid out.

Edgemode Handed the Lender Shares Before the Loan Was Complete
Illustration: markets sector, not the company's own operations. Financial District May 2010 — mark.watmough from Edinburgh, UK, CC BY 2.0, via Wikimedia Commons.

Before a dollar of the loan arrived, Edgemode had already handed the lender the shares.

Edgemode, Inc. OTC: EDGM

On August 17, 2026, Edgemode signed a deal with ClearThink Capital Partners, LLC giving it a convertible note with a face value of up to $1,150,000, for which the company would receive net proceeds of up to $1,000,000 — the gap being original-issue discount built into the note from the start, a guaranteed gain for the lender before interest is counted. As consideration for purchasing the note, ClearThink also received 200,000,000 restricted common shares outright, as a fee for agreeing to lend the money at all, according to the 8-K Edgemode filed with the SEC on August 21.

As of that filing date, $625,000 of the available proceeds had been received. The money did not stay long: Edgemode used roughly $328,000 to retire existing promissory notes and another $225,000 to pay Blackberry AIF under the joint venture agreement the two companies entered in January 2026. The filing does not say when the remaining proceeds will arrive.

The note carries a 12% interest rate, applied to the principal on the issuance date, and matures December 31, 2027. ClearThink cannot begin converting the note into Edgemode shares until 180 days after issuance — or sooner if Edgemode defaults. When it does convert, the price resets to 70% of the lowest closing price across the ten trading days before each conversion date. The lower the stock trades, the more shares ClearThink receives for each dollar of debt it cancels.

The 200 million commitment shares increase the share count before any conversion has taken place. Every conversion that follows adds more at a sliding discount. The agreement caps ClearThink's ownership at 9.99% of outstanding shares at any one time — limiting how much it can convert in a single tranche, but not the total it can accumulate over the life of the note by converting in stages.

The filing states the company's obligation to deliver conversion shares is "absolute and unconditional regardless of the dilutive effect."

Written by the PennyStocks.News desk from company filings and releases. Figures as reported by the company; no guarantee of accuracy or completeness. Nothing here is investment advice.