Data I/O Corporation (NASDAQ: DAIO) has entered into a securities purchase agreement for a private placement of approximately $13.25 million, according to a company statement. The offering includes convertible subordinated debentures and common shares and is expected to close within days, subject to customary closing conditions.

The debentures carry a five-year term with an interest rate of 5% in the first year, increasing by 1% annually thereafter. Of the total raise, $7.25 million will convert automatically into common stock at $2.68 per share. The remaining $4.0 million will be issued as preferred shares at $1,000 per share, which are non-voting and convertible into common stock at $2.68 per share.

The lead investor from Data I/O's June 2026 private placement has committed $4.0 million of the new round.

The company plans to hold a special shareholder meeting within 120 days of closing to seek approval for the issuance of common stock exceeding 19.9% of shares outstanding. Data I/O has also agreed to file a registration statement on Form S-1 within 30 days of closing.

The securities have not been registered under the Securities Act of 1933 and may not be offered or sold without registration or an applicable exemption.