GlucoTrack Inc (NASDAQ:GCTK) saw its stock fall 17% on Monday after announcing a new convertible note agreement with an investor totaling $3.6 million in principal.
The company issued the note on September 12, 2025, receiving $3 million in proceeds with a $600,000 original issue discount. The unsecured note carries no interest and matures in 12 months or upon the closing of a qualifying financing event, whichever occurs first.
Under the terms of the agreement, the note may convert into equity if GlucoTrack completes a qualified financing of at least $5 million. The conversion price will match the terms of that financing but cannot be below $4.87 per share of common stock.
The company also revealed that proceeds from its recently established $20 million equity line of credit with Sixth Borough Capital Fund must be applied to repay the note. Initially, 100% of net proceeds from the credit line will go toward repayment until stockholder approval is obtained for issuing shares beyond the “Exchange Cap,” after which 50% of proceeds will be allocated to repayment.
The note was issued via a private placement under Section 4(a)(2) of the Securities Act, which exempts transactions not involving public offerings.
This financing move comes just one day after GlucoTrack established its $20 million equity line of credit with Sixth Borough Capital on September 11, 2025.
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