ILAL International Land Alliance Inc.
Price Chart
Executive Summary
International Land Alliance issued a $385,000 convertible promissory note to an accredited investor with a 10% interest rate, 12-month maturity, and a warrant to purchase 48,125 shares at $10.00 per share. The note carries a $35,000 original issue discount and a conversion price that can drop to 65% of the lowest traded price over the prior 20 trading days, creating potentially severe dilution for existing shareholders.
Key Financial Metrics
Actionable Insight
The variable conversion price (65% of lowest 20-day traded price) creates a powerful downward spiral: as the stock falls, more shares are issued upon conversion, increasing supply and pushing the price lower. Traders should watch for conversion notices and monitor the share count for dilution. The registration rights mean converted shares can be freely sold, accelerating selling pressure.
Key Facts
- Issued convertible promissory note with aggregate principal amount up to $385,000
- Note has $35,000 original issue discount (effective proceeds ~$350,000)
- 10% annual interest rate, 12-month maturity from May 19, 2026
- Conversion price is the lesser of $6.00 per share or 65% of the lowest traded price during the prior 20 trading days
- Warrant to purchase 48,125 shares at $10.00 per share, 5-year term, cashless exercise option
- Shares issuable upon conversion and warrant exercise carry registration rights
- Offered as unregistered securities under Section 4(a)(2) and Rule 506 of Regulation D
Financial Impact
Up to $385,000 in new debt with a $35,000 OID, convertible into common stock at a deeply discounted variable price (65% of lowest 20-day VWAP), creating potentially severe dilution for existing shareholders. The warrant adds further potential dilution of 48,125 shares.
Risk Factors
- Severe dilution risk from variable-price convertible note — conversion at 65% of market price creates a death-spiral structure
- Registration rights allow immediate resale of converted shares, increasing overhang
- Warrant exercise at $10.00 may add further dilution if stock trades above that level
- High 10% interest rate and $35,000 OID indicate distressed borrowing terms
- No stated use of proceeds — raises concern about cash burn and liquidity
Market Snapshot
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-026839 |
| Document: 0001493152-26-026839-index-headers.html | 0001493152-26-026839 |
| Document: 0001493152-26-026839-index.html | 0001493152-26-026839 |
| Document: 0001493152-26-026839.txt | 0001493152-26-026839 |
US Market Status
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