Data I/O closes $9 million investment to fund growth
Data I/O Corporation secured $9 million through a private placement involving common stock, warrants, and convertible debentures. The deal includes $6.8 million in debentures with a 4.0% interest rate and a five-year maturity. Funds will be allocated for working capital and strategic acquisitions, pending shareholder approval for certain conversions.
*this image is generated using AI for illustrative purposes only.
Data I/O Corporation closed a $9 million investment with two institutional investors to accelerate growth and technological innovation. The financing, announced on June 17, 2026, comprises the issuance of common stock, warrants, and convertible debentures. The company intends to use the net proceeds for additional working capital, general corporate purposes, and future potential strategic acquisitions to support The New Data I/O initiative.
Pursuant to the securities purchase agreement, Data I/O issued 869,840 shares of common stock and warrants to purchase up to 1,080,000 shares of common stock. The warrants have an exercise price of $3.00 per share and will be exercisable for five years following the date of issuance. The transaction also included the issuance of unsecured convertible debentures in the aggregate principal amount of approximately $6.8 million.
The unsecured convertible debentures bear interest at a rate of 4.0% per annum, payable in cash or in Series B preferred stock at the company's discretion. These debentures will mature on the fifth anniversary of their issuance, unless repaid or converted earlier. The principal amount is convertible into Series B preferred stock, which is non-voting and convertible into common stock at an initial conversion price of $2.50 per share.
Key Transaction Details
The following table outlines the components of the $9 million investment:
| Component | Details |
|---|---|
| Common Stock Issued | 869,840 shares |
| Warrants | Up to 1,080,000 shares; Exercise price: $3.00; Term: 5 years |
| Convertible Debentures | Principal amount: ~$6.8 million; Interest rate: 4.0%; Maturity: 5 years |
| Conversion Price | $2.50 per share (into common stock via Series B preferred) |
The convertible debentures will automatically convert into Series B preferred stock upon receipt of approval by the company's stockholders at an upcoming meeting, pursuant to Nasdaq rules. Certain restrictions on the exercise of the warrants will cease following this stockholder approval. Data I/O has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares issued in the transaction, as well as shares issuable upon warrant exercise and conversion of the preferred stock.
Ladenburg Thalmann & Co. served as the exclusive placement agent for the investments, while Benchmark, a StoneX company, acted as financial advisor to Data I/O. The securities were sold in a private placement and have not been registered under the Securities Act of 1933.
What specific technologies or product lines does Data I/O plan to prioritize under 'The New Data I/O' initiative with this new capital?
Are there identified acquisition targets, or will the funds be used primarily for organic growth and R&D?
How will the issuance of convertible debentures and warrants impact existing shareholders' equity and earnings per share in the long term?
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