secwatch.observer — SEC 8-K summary
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Issuer:     DATA I/O CORP (DAIO)
CIK:        0000351998
Form:       8-K
Filed at:   2026-10-22T19:58:21+00:00
Accession:  0001193125-26-428897
Event type: m_and_a
Sentiment:  positive
Materiality: 0.80
Item codes: 1.01, 2.01, 2.03, 3.02, 5.03, 7.01, 8.01, 9.01
LLM model:  deepseek-v4.1-flash:cloud@v2

Data I/O closes $23M V-TEK acquisition, funded by $13.25M private placement of stock and 5% convertible notes
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- Total consideration $23.0M: $20.0M cash plus $3.0M in Data I/O common stock at $2.68/share; $1.3M of the price sits in escrow for indemnification.
- V-TEK (Mankato, MN) makes semiconductor handling automation for test and packaging; Data I/O expects the deal to roughly double consolidated revenue and be accretive.
- Private placement: 746,266 shares at $2.68 plus $11.25M of 5.0% five-year convertible notes due Oct 20, 2031; coupon rises 1 point each anniversary, 18% on default.
- Notes convert at $2.68 into common or into non-voting Series C preferred ($1,000 stated value); automatic conversion if holders approve issuing 20%+ of outstanding shares.
- Ladenburg Thalmann is placement agent: 7.0% cash fee, 1.0% management fee and up to $75,000 expense reimbursement; StoneX advised Data I/O on the M&A.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/351998/000119312526428897/0001193125-26-428897-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/351998/000119312526428897/d176225d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-26-428897

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