CID Holdco, Inc. (DAIC) Announces $6M Preferred Stock Financing

What Happened

• CID Holdco, Inc. (ticker: DAIC) filed an 8-K on July 22, 2026 disclosing a Securities Purchase Agreement under which the company agreed to issue preferred stock for aggregate gross proceeds of $6,000,000. The financing consists of 400,000 shares of newly authorized Series AA Convertible Non‑Redeemable Preferred Stock for $2,000,000 and 800,000 shares of Series B Convertible Preferred Stock for $4,000,000. Certificates of Designation for three new preferred series (Series AA, Series AAA and Series B) will be filed with Delaware prior to the applicable closings.

Key Details

• Total financing: $6,000,000 (Series AA $2.0M; Series B $4.0M).
• Share counts and implied price: 400,000 Series AA and 800,000 Series B (implied $5.00 per share based on amounts disclosed).
• Conversion structure: Series AA and Series AAA are convertible into common stock; Series B is convertible into Series AAA (conversion of Series B to Series AAA is subject to stockholder approval). Certificates of Designation will set conversion, dividend, liquidation preference, voting, director-designation and anti‑dilution rights.
• Agreements filed as exhibits: Purchase Agreement (Ex. 10.1) and related forms (Certificates of Designation, Registration Rights Agreement, Voting Agreement, Employment Agreement); press release dated July 22, 2026 (Ex. 99.1).

Why It Matters

• This is a material financing: $6M in new capital can provide near‑term liquidity for operations or strategic priorities.
• Potential dilution and governance impact: the preferred shares include conversion rights, voting and director-designation provisions and anti-dilution protections — all of which can affect common shareholders’ ownership percentage and board composition if conversions or director-designation rights are exercised.
• Next steps for investors: watch for the filing of the Certificates of Designation, any required stockholder votes (especially for Series B conversion to Series AAA), and the company’s disclosure of closing dates and use of proceeds.