CBLO C2 Blockchain, Inc.

BEARISH Impact: 7/10 8-K
Horizon weeks Filed May 5, 2026 Processed 1mo ago SEC 0001882781-26-000029
Killer combo: Material agreement + unregistered equity (likely PIPE/convertible)
Latest settled — T+20d
CBLO ▲ 0.00% at T+20d
SHORT call ✗ call lost 0.00% · α vs SPY +4.95% · entry $0.0600 → $0.0600
Next anchor: T+60d in 7w
Currently $0.0600 · +0.00% from $0.0600 entry (call sign-flipped)
Entry anchored
May 5, 2026
via day open
T+1d
0.00%
call 0.00% · α +1.38%
$0.0600
settled 5w ago
T+5d
0.00%
call 0.00% · α +1.98%
$0.0600
settled 29d ago
T+20d
0.00%
call 0.00% · α +4.95%
$0.0600
settled 7d ago
T+60d
call — · α —
in 7w

Price Chart

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Executive Summary

C2 Blockchain issued a $120,000 convertible promissory note to Labrys Fund II, L.P. for net proceeds of $100,000, and separately sold 3.8 million shares of common stock at $0.01 per share for $38,000 in two private placements. The convertible note has a 10% interest charge, a 12-month maturity, and a deeply discounted conversion price (75% of the lowest closing bid over the prior 10 days), creating severe near-term dilution risk for existing shareholders.

Key Financial Metrics

Offering Size
$100.0K

Actionable Insight

This is a distressed financing at predatory terms. The floating-rate conversion at 75% of the lowest bid price means Labrys Fund can convert at progressively lower prices as the stock declines, creating a death spiral. The $0.01/share stock sales confirm the company is desperate for cash. Expect continued dilution and downward price pressure. Avoid long positions unless a fundamental catalyst emerges that is not related to capital structure.

Key Facts

  • Issued $120,000 convertible promissory note to Labrys Fund II, L.P. on April 23, 2026, with net proceeds of $100,000 (reflecting $20,000 OID).
  • Note carries a one-time 10% interest charge ($12,000) and matures April 23, 2027.
  • Conversion price is 75% of the lowest closing bid price over the prior 10 trading days — a deeply dilutive floating-rate structure.
  • Holder can convert after 180 days (or earlier upon payment default or share registration).
  • Company must reserve at least 5,000,000 shares for conversion — a massive reserve relative to likely outstanding shares.
  • Sold 3,000,000 shares at $0.01/share on April 28, 2026 for $30,000, and 800,000 shares at $0.01/share on April 30, 2026 for $8,000.
  • Total gross proceeds from all transactions: $138,000 ($100,000 from note + $38,000 from stock sales).
  • Note is unsecured and includes amortization payments starting October 23, 2026 ($66,000) through April 23, 2027.
  • Upon default, amounts accelerate at 150% of outstanding balance.

Financial Impact

Total capital raised of $138,000 is trivial for any operating business, but the convertible note's 75%-of-lowest-bid conversion price and 5M+ share reserve will cause severe dilution at current or lower stock prices.

dilutionshare countcapital structure

Risk Factors

  • Severe dilution from convertible note conversion at deeply discounted floating price
  • Death spiral dynamics — conversion at 75% of lowest bid incentivizes short selling by the note holder
  • Cash burn continues with only $138,000 raised — likely needs additional dilutive financing soon
  • OTC stock with no revenue disclosed — high risk of further deterioration
  • Amortization payments ($66,000 due Oct 2026) may strain cash if no revenue materializes

Market Snapshot

Exchange
OTC
Sector
Finance Services

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001882781-26-000029
Document: form8k42326o.htm0001882781-26-000029
Document: 0001882781-26-000029-index-headers.html0001882781-26-000029
Document: 0001882781-26-000029-index.html0001882781-26-000029
Document: 0001882781-26-000029.txt0001882781-26-000029
3 reports for CBLO
Performance horizon

Track record builds as more directional reports settle.

Filters
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Reports for CBLO — sortable, filterable
Type Now
Jun 2, 2026
7d ago
8-K
BEARISH ★ 7/10
$0.0600 $0.0600· 0.00%▼ −0.69%$0.0600 (+0.00%)
May 5, 2026
5w ago
8-K
BEARISH ★ 7/10
$0.0600 $0.0600· 0.00%▲ +1.38%$0.0600 (+0.00%)
Apr 17, 2026
7w ago
8-K
NEUTRAL ★ 3/10
$0.0600 $0.0689▲ +14.83%▲ +15.03%$0.0600 (−0.00%)
Showing 3 of 3

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