---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-26-047783"
form_type: "8-K"
ticker: "NCPL"
cik: "0001414767"
company_name: "Netcapital Inc."
filed_at: "2026-10-20T21:00:16+00:00"
generated_at: "2026-10-20T21:02:19.671613+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# Netcapital closes $402,743 first tranche of $641,937 Hinterland convertible note; 10-K/10-Q delinquent

## Summary
- First tranche: Hinterland paid $402,743 for a $447,492.22 principal note; total facility up to $641,936.66 principal for $577,743, a $64,193.66 original issue discount.
- Note carries a one-time 12% interest charge ($53,699.06 on tranche one), matures 12 months after each funding, and converts at 85% of the lowest traded price over the prior seven trading days.
- Secured by a pledge of 3,209,685 KingsCrowd Class A shares; on default Hinterland gains voting rights, can take shares at $0.18 each, and the default amount is multiplied by 150%.
- Second $175,000 tranche requires the company to become current on its delinquent FY2026 10-K (April 30, 2026) and 10-Q (July 31, 2026) within 90 days and stay Nasdaq-listed.
- Issued 64,387 commitment shares; a 1,603,685-share exchange cap needs shareholder approval at a special meeting within 180 days; Enclave Capital received $17,500 in fees.

## SEC filing metadata
- accession: 0001493152-26-047783
- form_type: 8-K
- ticker: NCPL
- cik: 0001414767
- company_name: Netcapital Inc.
- filed_at: 2026-10-20T21:00:16+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1414767/000149315226047783/0001493152-26-047783-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1414767/000149315226047783/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-047783
- JSON: https://secwatch.observer/filing/0001493152-26-047783.json
- Plain text: https://secwatch.observer/filing/0001493152-26-047783.txt

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