T3 Defense completed a $10 million private placement on October 22, issuing preferred shares and warrants to an investor under an agreement signed in February. The financing adds convertible securities to the company’s capital structure, while repayment of a term note and a placement-agent fee reduced the cash proceeds T3 retained.
- Financing terms: T3 sold 200 units for $50,000 each, raising $10 million before deductions. Each unit included one share of Series B convertible preferred stock and warrants; the warrants issued in the transaction initially cover up to 14,851 common shares.
- Cash retained: T3 received $6.605 million in net proceeds after paying the principal and accrued interest on a term note owed to the investor and a 3.5% fee to Dawson James Securities. The company did not break out those two deductions separately.
- Investor and agreement: The units were sold to an accredited investor under the securities purchase agreement dated February 24, 2026.
- Capital structure: The preferred stock is convertible into common stock, and the warrants can be exercised for common shares. Conversion or exercise would increase the number of common shares outstanding; the update does not restate the conversion or exercise terms.
The transaction both provides cash and settles the term note, but the net cash raised was $6.605 million rather than the $10 million gross amount. The preferred shares and warrants also create potential future dilution if converted or exercised.