FTHM terminates NXH merger; extends convertible notes, cuts conversion price to $0.65

Fathom terminated its June 2026 merger agreement with Neighborhood Intelligence (formerly Bed Bath Beyond) effective October 5, 2026, with no termination fee owed by either party. Simultaneously, the company amended its convertible notes to extend maturity by one month to November 1, 2026, slash the conversion price from $4.25 to $0.65 per share (85% reduction), raise the interest rate to 18% per annum, and cap conversion at 19.99% of shares outstanding. These terms signal financial distress and heavy dilution ahead.

Fathom's planned merger deal fell through, and to raise cash the company is letting existing lenders convert their debt into shares at a much lower price ($0.65 vs. $4.25), with a higher interest rate and the pending risk of dilution capping out at 20% of shares.