NEW YORK, December 31, 2025, 06:38 ET — Premarket
- Inspire Veterinary Partners shares were up about 18% in premarket trading.
- A recent SEC filing disclosed a $150,000 debt-for-equity exchange priced at $0.05 per share.
- Investors are watching for further dilution risk and Nasdaq listing updates.
Shares of Inspire Veterinary Partners, Inc. rose about 18% to $0.05 in premarket trading on Wednesday.
The move put a spotlight on the company’s latest effort to reshape its balance sheet, a theme that has dominated trading in the stock in recent months.
For micro-cap names trading in pennies, even small financing or capital-structure changes can drive outsized price swings because each new issuance can quickly change the supply of shares.
In a regulatory filing, Inspire said it agreed to cancel $150,000 of principal under a June 10, 2025 promissory note in exchange for 3,000,000 shares of its Class A common stock, implying a price of $0.05 per share.
That kind of debt-for-equity swap replaces what a company owes with newly issued stock — it reduces debt, but it can dilute existing shareholders if more shares are added to the market. The cancellation-and-exchange agreement said the shares were to be issued within two business days and was signed by CEO Kimball Carr and Target Capital 1 LLC managing partner Dmitriy Shapiro.
Earlier this month, the company said it lowered the “floor price” — a minimum price used in some conversions — on its Series B preferred stock and on promissory notes with Target Capital to $0.05 per share, and it disclosed a waiver to allow redemption of 2,027 preferred shares for about $2.7 million. SEC
In a separate information statement filed in late December, Inspire said majority shareholders approved an amendment to raise its authorized Class A share count to 700 million. Authorized shares are the maximum a company can issue; raising the limit can give more flexibility to raise capital but does not itself issue stock.
The stock has also faced listing pressure. In a November filing, Inspire said Nasdaq warned it would suspend trading and start delisting proceedings unless the company appealed, and the company said it planned to seek a hearing while cautioning there was no assurance it would maintain its listing.
Nasdaq previously said Inspire would effect a 1-for-25 reverse stock split effective January 27, 2025 — a move that reduces the number of shares to lift the price per share.
The company operates veterinary hospitals across the United States and focuses on small-animal general practice, according to a December 9 prospectus.
In a September shareholder update, CEO Kimball Carr said, “Inspire is back to growth and we are better positioned for success than ever before.” Nasdaq
