FibroBiologics raises $1.02M via convertible debt from Peak One

FibroBiologics issued a $1.2M convertible debenture with a 15% original issue discount (net proceeds $1.02M) and 125,000 restricted shares to Peak One Opportunity Fund. The terms include 0% current interest, convert at $0.78/share only upon default, and mandate 50% of any cash raises over $1.5M go toward repayment, plus restrictions on issuing above a Nasdaq-capped 1.67M shares without stockholder approval. This dilutes existing shareholders and limits future fundraising flexibility, but the small capital raise and defensive conversion mechanics suggest moderate near-term pressure.

FibroBiologics borrowed $1 million and gave the lender stock options and shares, meaning existing shareholders own a smaller piece of the company. The loan has unusual terms that make it expensive if the company misses payments.