Dune Oil Announces Conversion of Debentures to Eliminate Debt

What happened

Dune Oil Corp. said it will convert its 12.0% convertible debentures into 93,333,334 common shares at $0.15 each, removing about $14,000,000 of principal and interest debt, with the shares locked up over 36 months and settlement expected around October 27, 2026.

Confirmed

Global impact / market context

Converting debt into shares removes the repayment obligation and interest cost tied to the 12.0% debentures, which means money that might have gone to debt service can support the M47 oil block work program over the next 12 months. Existing holders also face share dilution.

Confirmed

Dune is a small OTCQB-listed company, so eliminating debt can reduce balance-sheet risk that weighs on such firms. The 36-month lock-up, which means insiders cannot sell those shares immediately, limits near-term selling pressure from the new shares but does not remove the added share count.

Analyst inference

What to watch

1. The company expects to complete the settlement on or about October 27, 2026, so confirmation that the conversion closed and the debentures are no longer outstanding is the first checkpoint. Confirmed
2. Track whether the M47 oil block work program in southeastern Türkiye moves forward, since the company says the balance-sheet change is meant to support it over 12 months. Analyst inference
3. Watch how the 93,333,334 new common shares, locked up over 36 months, are released, because staged releases can add selling pressure and dilute per-share value over time. Proposed

Evidence

• newsfilecorp.com