Data I/O Announces Closing of $9 Million Investment

Data I/O (NASDAQ: DAIO) closed a $9 million private investment with two institutional investors, issuing 869,840 common shares, unsecured convertible debentures of about $6.8 million, and warrants for up to 1,080,000 shares.

Rhea-AI Summary

Data I/O (NASDAQ: DAIO) closed a $9 million private investment with two institutional investors, issuing 869,840 common shares, unsecured convertible debentures of about $6.8 million, and warrants for up to 1,080,000 shares.

Debentures bear 4% interest, mature in five years, and convert into non-voting Series B preferred stock, initially convertible to common at $2.50 per share. Proceeds will fund working capital, general purposes, and potential strategic acquisitions.

Positive

• Raises $9 million gross proceeds to bolster capital and liquidity
• 4% unsecured convertible debentures with five-year maturity provide flexible financing
• Conversion price of $2.50 per share sets defined equity conversion framework
• Proceeds earmarked for working capital, corporate uses, and potential acquisitions

Negative

• Issuance of 869,840 shares plus up to 1,080,000 warrant shares adds dilution risk
• Convertible debentures and preferred stock create future equity overhang
• 4% annual interest on $6.8 million debentures adds ongoing interest expense

Argus Jun 17 session

-0.77% close to close Open Argus

Details

News Market Reaction – DAIO

In the Jun 17 session, DAIO declined 0.77%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement finalizes a previously outlined $9 million investment combining common stock, $6.8...

Analysis

This announcement finalizes a previously outlined $9 million investment combining common stock, $6.8 million of 4.0% unsecured convertible debentures, and 1,080,000 warrants at $3.00. Proceeds are earmarked for working capital, corporate purposes and strategic acquisitions. The structure introduces a $2.50 conversion overhang and additional preferred equity, alongside an effective $20,000,000 shelf, so investors may monitor future issuance, shareholder approvals and progress on the stated growth strategy.

Key Figures

Gross proceeds: $9 million Common shares issued: 869,840 shares Convertible debentures: $6.8 million +5 more

Gross proceeds

$9 million

Aggregate gross proceeds from securities purchase agreement

Common shares issued

869,840 shares

Shares of common stock issued in financing

Convertible debentures

$6.8 million

Aggregate principal amount of unsecured convertible debentures

Warrant shares

1,080,000 shares

Common shares underlying warrants

Warrant exercise price

$3.00 per share

Exercise price for warrants, exercisable for five years

Debenture interest rate

4.0% per annum

Interest on unsecured convertible debentures

Debenture maturity

5 years

Matures on fifth anniversary of issuance date

Conversion price

$2.50 per share

Initial common stock conversion price for Series B preferred

Historical Context

5 past events · Latest: May 21

5 events

1. May 21

   Conference correction

   24h Move

   -3.8%

   Clarified investor conference details and reiterated acquisition and guidance.

2. May 21

   Conference preview

   24h Move

   -3.8%

   Announced conference talk on acquisition, $9M investment and growth framework.

3. May 14

   Q1 2026 earnings

   24h Move

   +10.0%

   Weak quarter but outlined $23M acquisition, $9M placement and growth guidance.

4. May 14

   Transformational deal

   24h Move

   +10.0%

   Announced ~$23M acquisition expected to nearly double annual revenue.

5. May 14

   Direct investment

   24h Move

   +10.0%

   $9M private placement combining shares, convertible debentures and warrants.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible debentures, warrants, series b preferred stock, nasdaq rules, +3 more

7 terms

convertible debentures financial

"The financing includes the issuance of common stock and warrants, and a convertible debenture."

Convertible debentures are loans a company issues that pay interest like a bond but can be swapped later for the company’s shares at a set price. For investors they act like a safety-net plus a shortcut: you get regular interest payments while retaining the option to join ownership if the share price rises, which offers upside potential but can dilute existing shareholders if conversion occurs.

warrants financial

"The financing includes the issuance of common stock and warrants, and a convertible debenture."

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

series b preferred stock financial

"The principal amount of the convertible debentures will be convertible into Series B preferred stock of the Company."

Series B preferred stock is a type of ownership share issued by a company that offers certain advantages over common stock, such as priority in receiving dividends or assets if the company is sold or liquidated. It is typically issued after an initial round of funding, making it a way for investors to support a company's growth while gaining some protections and benefits. This stock matters to investors because it often provides a more secure investment position with potential for future growth.

nasdaq rules regulatory

"Stockholder Approval") pursuant to Nasdaq rules."

Nasdaq rules are a set of guidelines and requirements that companies must follow to be listed and remain on the Nasdaq stock exchange. These rules help ensure companies are transparent, financially healthy, and operate fairly, which is important for investors to trust the market and make informed decisions. Think of them as the standards that keep the marketplace honest and organized.

registration statement regulatory

"has agreed to file a registration statement with the Securities and Exchange Commission"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

private placement financial

"The securities sold in the private placement have not been registered under the Securities Act"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

exemption regulatory

"absent registration or an applicable exemption from the registration requirements"

An exemption is an official permission to be temporarily or permanently freed from a specific regulatory requirement, rule, or filing that would normally apply to a company or transaction. Think of it as a tailored waiver that lets a business skip or alter a paperwork or compliance step without penalty; investors care because exemptions can speed deals, reduce costs, or change risk and disclosure levels, affecting transparency and value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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REDMOND, Wash., June 17, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO) (the “Company”), the leading global provider of data provisioning solutions for flash memory, microcontrollers and security ICs, today announced the closing of its previously announced definitive securities purchase agreement with two institutional investors for aggregate gross proceeds of $9 million, before placement agent fees and offering expenses. The financing includes the issuance of common stock and warrants, and a convertible debenture.

Pursuant to the terms of the securities purchase agreement, the Company issued 869,840 shares of common stock, convertible debentures in the aggregate principal amount of approximately $6.8 million and warrants to purchase up to 1,080,000 shares of common stock for an aggregate purchase price of $9 million. The warrants have an exercise price of $3.00 per share and will be exercisable for five (5) years following the date of issuance.

The unsecured convertible debentures will be issued in the principal amount of approximately $6.8 million. The convertible debentures will bear interest, payable in cash or in Series B preferred stock at the discretion of the Company, at a rate of 4.0% per annum and will mature on the fifth anniversary of its date of issuance, unless repaid or converted earlier. The principal amount of the convertible debentures will be convertible into Series B preferred stock of the Company. The Series B preferred stock is non-voting and is convertible into the Company’s common stock at an initial conversion price of $2.50 per share. The convertible debentures will automatically convert into the Company’s Series B preferred stock upon receipt of approval by the Company’s stockholders at an upcoming shareholders meeting (“Stockholder Approval”) pursuant to Nasdaq rules. Certain restrictions on exercise of the warrants will cease following receipt of Stockholder Approval.

Data I/O intends to use the net proceeds from the investments for additional working capital, general corporate purposes and future potential strategic acquisitions to accelerate the growth and technological innovation of The New Data I/O.

Ladenburg Thalmann & Co. is serving as exclusive placement agent for the investments. Benchmark, a StoneX company, is serving as financial advisor to the Company.

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (“Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. Data I/O Corporation has agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) registering the resale of the shares of common stock to be issued in the transaction as well as the common stock issuable upon the exercise of the Warrants and upon conversion of the Preferred Stock.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Data I/O Corporation
Since 1972, Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, Internet-of-Things, medical, wireless, consumer electronics, industrial controls, and other electronics devices. Today, our customers use Data I/O security deployment and programming solutions to reliably, securely, and cost-effectively, bring innovative new products to life. These solutions are backed by a global network of Data I/O support and service professionals, ensuring success for our customers. For more information, please visit www.dataio.com.

Safe Harbor/Forward Looking Statements and Disclosure Information
The Company cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. Such forward-looking include, but are not limited to, the anticipated use of proceeds of the financing, the ability to receive shareholder approval regarding the size of the financing, and the registration for resale of the securities being issued and sold in the financing. These statements are based on the Company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by the Company that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company's business, including, without limitation, market, market risks and other market conditions; and financing contingencies/shareholder approval.

Factors that may impact the Company’s operations and finances include uncertainties as to the ability to record revenues based upon the timing of product deliveries, market acceptance of Edge AI, shipping availability, installations and acceptance, accrual of expenses, coronavirus or other business interruptions, changes in economic conditions, part shortages, business disruptions and other risks including those described in the Company’s 10-K, 10-Q and other periodic filings with the Securities and Exchange Commission (SEC), press releases and other communications.

Data I/O may use its website (www.dataio.com) and investor relations page (www.dataio.com/Company/Investor-Relations), its X account (@DataIO_Company), and its LinkedIn page (linkedin.com/company/data-io) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors and other interested parties should monitor these sites, in addition to following Data I/O’s press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public presentations/webcasts.

Media Contact
Data I/O Corporation
Jennifer Higgins
Director Corporate Marketing
higginj@dataio.com
+1-425-867-6922

Investor Contact
Darrow Associates, Inc.
Jordan Darrow
jdarrow@darrowir.com
631-766-4528

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Data I/O (NASDAQ: DAIO) announce on June 17, 2026 about new funding?

Data I/O announced closing a $9 million private investment with two institutional investors. According to Data I/O, the deal includes common shares, unsecured convertible debentures of about $6.8 million, and warrants to buy up to 1,080,000 common shares.

What are the key terms of Data I/O's $6.8 million convertible debentures?

Data I/O's unsecured convertible debentures total about $6.8 million, carry 4.0% annual interest, and mature in five years. According to Data I/O, they are convertible into Series B preferred stock, which is then convertible into common shares at an initial $2.50 per share.

How many new shares and warrants are issued in Data I/O's $9 million investment?

Data I/O is issuing 869,840 common shares and warrants for up to 1,080,000 shares as part of the $9 million financing. According to Data I/O, these warrants have a $3.00 exercise price and are exercisable for five years, subject to certain stockholder approvals.

At what prices can Data I/O's new securities convert into common stock?

Data I/O's Series B preferred stock is initially convertible into common shares at $2.50 per share. According to Data I/O, the accompanying warrants allow investors to purchase common stock at $3.00 per share over a five-year exercise period.

How will Data I/O use the $9 million in gross proceeds from this investment?

Data I/O plans to use the net proceeds for working capital, general corporate purposes, and possible strategic acquisitions. According to Data I/O, the goal is to support growth and technological innovation for what it terms The New Data I/O.

What stockholder approvals are required for Data I/O's debenture conversion and warrants?

The debentures will automatically convert into Series B preferred stock once stockholders approve the transaction under Nasdaq rules. According to Data I/O, certain restrictions on warrant exercises will also end following this stockholder approval at an upcoming shareholders meeting.

Are Data I/O's newly issued securities registered for resale with the SEC?

The securities were sold in a private placement and are initially unregistered under the Securities Act. According to Data I/O, the company has agreed to file an SEC registration statement covering resale of the issued common shares and common stock underlying the warrants and preferred stock.