Data I/O Corporation (NASDAQ: DAIO) announced on October 19, 2026, that it has entered into a securities purchase agreement for a private placement of approximately $13.25 million. The proposed offering consists of the issuance of convertible subordinated debentures and common shares. The company expects the transaction to close within the next few days, subject to customary closing conditions.
The offering details include a five-year term for the debentures, which bear interest at 5% for the first year and increase by 1% for each subsequent year. The debentures will convert automatically into Data I/O common stock or preferred shares. Specifically, $7.25 million of the round is designated for conversion into common stock at a price of $2.68 per share, while $4.0 million pertains to preferred stock at a conversion price of $1,000 per share. The preferred stock is non-voting but is convertible into common stock at the same $2.68 per share rate.
The company intends to hold a special meeting of shareholders within 120 days of the closing. The sole agenda item for this meeting is the approval of the issuance of common stock in excess of 19.9% of the shares outstanding. Additionally, Data I/O has agreed to file a registration statement on Form S-1 within 30 days of closing the offering.
The lead investor from the company’s June 2026 private placement has committed an additional $4.0 million to this round. Data I/O noted that the securities issued in the acquisition and the equity investment have not been registered under the Securities Act of 1933 and may not be offered or sold absent registration or an applicable exemption.
