FingerMotion raises $5 million via convertible note with institutional investor

FingerMotion, Inc. (NASDAQ: FNGR) entered into a securities purchase agreement with an institutional investor for a $5 million senior secured convertible note, according to a company statement. The transaction closed on May 13, 2026.

The company received $3.3 million at closing, with an additional $1 million to be released upon SEC effectiveness of a resale registration statement. The note carries an original issue discount of $700,000 and bears no interest except upon default. The note matures one year from the closing date unless converted or redeemed earlier.

The note converts into common stock at the investor's option at an initial fixed conversion price of $0.94 per share, subject to standard adjustments. During specified monthly periods, the investor may convert up to $1 million of the note at a redemption conversion price equal to the lower of the fixed conversion price or 90% of the lowest volume-weighted average price during seven consecutive trading days, subject to a floor price initially set at 20% of the Nasdaq minimum price.

If FingerMotion cannot issue conversion shares due to exchange limitations or floor price conditions, the investor may require cash satisfaction of monthly conversion amounts at a 7.5% premium.

The note includes standard default provisions covering trading suspension, failure to deliver shares, payment defaults, acceleration of other debt exceeding $500,000, bankruptcy proceedings, judgments over $500,000, document breaches, registration statement failures, security interest issues, and minimum cash covenant violations.

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