Debt just became new shares. A convertible note is a loan structured so the lender can collect company stock instead of cash when certain conditions are met. That option was exercised against Stardust Power Inc. (Nasdaq: SDST) on August 17, 2026, when lender Lind Global Asset Management XIII LLC formally notified the company it would convert $150,000 of outstanding principal into common stock.
The shares arrived two days later. On August 20, 2026, Stardust Power issued 304,878 shares to Lind at a conversion price of $0.492 per share. The company collected no cash from the transaction.
What put Lind in a position to convert
The original loan dates to December 23, 2025. That is when Stardust Power issued Lind a Senior Secured Convertible Promissory Note with an original principal amount of $4,800,000. Buried in those terms was a clause: if the company's market capitalization stayed below $15.0 million for ten consecutive trading days, it would constitute an event of default.
That threshold was crossed. Stardust Power disclosed in its quarterly report for the period ended June 30, 2026 that its market cap had, in fact, remained below $15.0 million for ten straight trading days. Under the terms of the note, Lind gained the right to require conversion of all or part of the outstanding principal into shares.
What remains on the books
After the $150,000 conversion, $3,430,000 in principal remains outstanding under the 2025 Convertible Note. Stardust Power added a clear caveat to that figure in its August 21 filing: the number does not reflect the mandatory default amount or any additional sums that may become due because of the event of default. The final tab could be larger.
The conversion brought Stardust Power's total shares of common stock outstanding to 14,523,933. Those new shares were issued under Section 3(a)(9) of the Securities Act of 1933, a provision that permits an existing security holder to exchange one instrument for another without a registered public offering, provided no commission is paid for soliciting the exchange.
Stardust Power is incorporated in Delaware and headquartered at 15 E. Putnam Ave in Greenwich, Connecticut. Its common stock trades on the Nasdaq Capital Market under the ticker SDST. The August 21 filing was signed by Chief Executive Officer Roshan Pujari.