What is the timeline for converting the preferred shares into common equity?

Conversion timeline

ECD Automotive’s Series C Convertible Preferred Stock is slated to be convertible into common equity within the next 12 months – the standard conversion window disclosed in the filing – and can be exercised earlier if any of the “trigger events” listed in the preferred‑stock agreement occur (e.g., a qualified financing, a change‑of‑control, or the achievement of specified liquidity‑event thresholds). The company did not announce an immediate conversion; instead, the preferred shares will remain outstanding until the earliest of the 12‑month expiry date or a trigger event that the board elects to activate.

Trading implications

Because the conversion can add up to 15,000 + 1,111 = 16,111 common shares to the float, the market should price in a modest dilution risk over the coming year. Until conversion, the preferred shares act like a high‑yield, low‑volatility instrument (≈ 10 % annualized on the $10 MM note exchange). Traders can treat the preferred issuance as a near‑term “cash‑in‑hand” boost to the balance sheet, while keeping an eye on the 12‑month conversion horizon for a potential upward‑pressure on ECDA’s common‑stock price if the conversion is triggered on favorable terms. A short‑to‑neutral stance on the common shares now, with a watch‑list for any announced trigger event, would be prudent.