Black Titan Eliminates Short-Term Debt Through Full Stock Conversion
New York, Wednesday, 2 September 2026.
On September 2, 2026, Black Titan Corporation converted its senior unsecured note into nearly 2.9 million ordinary shares, completely eliminating its short-term debt liabilities to strengthen its capital structure.
Debt Conversion Completed to Strengthen Capital Structure
On September 2, 2026, Black Titan Corporation (NASDAQ: BTTC) announced the full conversion of its outstanding senior unsecured convertible note, effectively eliminating significant short-term liabilities [1]. This strategic financial move converts debt obligations into 2,924,082 ordinary shares, thereby reducing interest expenses and improving the company’s free cash flow position [1]. The completion of this conversion satisfies all principal and interest obligations associated with the note, which was originally issued on January 16, 2026 [1]. By removing this debt burden, the company aims to scale operations more effectively while maintaining a robust capital structure amidst current market conditions [1].
Financial Details and Original Issue Discount
The convertible note carried an original principal amount of $1,515,000, which included $15,000 in fees, against a purchase price of $1,350,000 [1]. This pricing structure represented a 10% original issue discount, calculated based on the difference between the principal and purchase price relative to the principal amount 10.891 [1]. Conversion of the debt occurred in tranches between May 2026 and August 20, 2026, ensuring a staggered approach to equity dilution [1]. The precise alignment of conversion tranches allowed the company to manage share issuance while meeting debt satisfaction requirements prior to the September announcement [1].
Future Financing Options and Management Commentary
Black Titan Corporation retains the option to issue additional notes under the existing Securities Purchase Agreement, which remains in effect through January 16, 2029 [1]. The agreement allows for up to $200,000,000 in aggregate principal amount, providing substantial flexibility for future capital raising activities [1]. Brynner Chiam, Co-CEO of Black Titan, confirmed that the company has no remaining obligations under the converted note [1]. While the company issued forward-looking statements regarding potential risks such as market volatility and regulatory developments, it explicitly stated it holds no obligation to update these statements as conditions evolve [1].