Free course · Lesson 13 · 3 min

Fixed-price convertible notes

$2.80where PNDA’s note turns into shares

$3.42PNDA this morning

In 3 minutes: what a fixed-price convertible note is, and why its price becomes a level.

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01A loan that can become shares

The company borrows cash and signs a note. The lender can swap that debt for new shares at a price set on day one: the conversion price.

The loan$1.5M lent to PNDA

the lender converts

Conversionat $2.80 a share

$1.5M ÷ $2.80

New shares0.54M, issued by PNDA

the lender sells

The marketyour tape

PNDA keeps the $1.5M: the debt is paid in shares, not cash

Fixed price: the conversion price does not move with the market.

The price is fixed, so the number of new shares is known in advance.

$1.5Mthe note

÷ $2.80conversion price, fixed

≈ 0.54Mnew shares if it all converts

On Panda Desk →DILUTION INSTRUMENTS → Convert · $2.80 - 0.54M - 15-12-26The conversion price, the shares, and the due date: Dec 15, 2026.

Above the conversion price, the lender can convert and sell at a profit. That makes $2.80 a level where new supply can show up.

PNDA against its conversion price

Yesterday’s close

$2.42

Conversion price

$2.80

This morning

$3.42

Yesterday, converting lost money. This morning, the note is in the money.

On Panda Desk →AI Insight → Hidden Levels · 2.80The note’s price, drawn as a level: in the money above it.

Under the conversion price, converting loses money, so the lender waits. The note stays debt, due Dec 15.

Above $2.80convert and sell: new shares on your tape

Below $2.80no conversion: debt, due Dec 15

On Panda Desk →AI Insight → Timeline · WATCHNote conversions above $2.80.

Odds, not a ruleThe lender may also hold, or convert a little at a time. Above $2.80, selling is possible, not certain.

For the longAbove $2.80, up to 0.54M new shares can meet your bid. If the price falls back under it, that seller loses its reason to sell.

SEC, Investor.gov: Convertible Securities: fixed versus market-price conversion, and where the terms are disclosed (10-K, 10-Q and 8-K, on EDGAR).

Panda Desk shows these rows for any small cap, next to your montage. tspanda.com

Not financial advice. PNDA is fictional, and nothing here is a recommendation to buy or sell.