---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-26-024229"
form_type: "8-K"
ticker: "NCPL"
cik: "0001414767"
company_name: "Netcapital Inc."
filed_at: "2026-05-18T21:14:53+00:00"
generated_at: "2026-05-18T21:17:35.051922+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# Netcapital issues $290K convertible note and warrants to Labrys Fund II in private placement

## Summary
- Issued $290,000 convertible note to Labrys Fund II for $250,000 purchase price ($40,000 OID); note matures May 12, 2027.
- Note bears 12% flat interest ($34,800), amortization payments begin Nov 12, 2026, conversion at 75% of lowest bid over 10 days (floor $0.10).
- Issued warrant to purchase 250,000 shares at $0.50/share, exercisable Nov 12, 2026 to May 12, 2029, with cashless exercise provision.
- Net proceeds of approximately $224,500 after fees and costs for working capital and business development.
- Event of default if registration statement not filed within 60 days or effective within 120 days of issue date.

## SEC filing metadata
- accession: 0001493152-26-024229
- form_type: 8-K
- ticker: NCPL
- cik: 0001414767
- company_name: Netcapital Inc.
- filed_at: 2026-05-18T21:14:53+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1414767/000149315226024229/0001493152-26-024229-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1414767/000149315226024229/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-024229
- JSON: https://secwatch.observer/filing/0001493152-26-024229.json
- Plain text: https://secwatch.observer/filing/0001493152-26-024229.txt

## Key facts
- Debt Financings
  Netcapital Inc. incurred loan of $290,000 with Labrys Fund II, L.P. at 12% of the principal amount, or $34,800 maturing May 12, 2027.
  - Instrument: loan
  - Principal: $290,000
  - Counterparty: Labrys Fund II, L.P.
  - Rate: 12% of the principal amount, or $34,800
  - Maturity: May 12, 2027
  - Event: incurrence
  source text: On May 12, 2026, Netcapital Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Labrys Fund II, L.P., a Delaware limited partnership (“Labrys”), pursuant to which the Company issued to Labrys a promissory note in the principal amount of $290,000 (the “Note”)
  evidence_url: https://www.sec.gov/Archives/edgar/data/1414767/000149315226024229/0001493152-26-024229-index.htm
- Material Agreements
  Netcapital Inc. entered into Securities Purchase Agreement with Labrys Fund II, L.P. valued at $290,000 (effective 2026-05-12).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: Labrys Fund II, L.P.
  - Value: $290,000
  - Effective: 2026-05-12
  source text: On May 12, 2026, Netcapital Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Labrys Fund II, L.P., a Delaware limited partnership (“Labrys”), pursuant to which the Company issued to Labrys a promissory note in the principal amount of $290,000
  evidence_url: https://www.sec.gov/Archives/edgar/data/1414767/000149315226024229/0001493152-26-024229-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.