Eshallgo Inc. announced on November 29, 2024, that it entered into a securities purchase agreement with an accredited investor to issue convertible debentures in an aggregate principal amount of up to $5,000,000. These debentures bear an annual interest rate of 5%, which will increase to 18% in the event of default, and are set to mature on November 28, 2025.
The initial closing of $1,500,000 occurred on November 29, 2024. The remaining $3,500,000 is structured to close in two subsequent tranches upon the filing and effectiveness of a registration statement with the U.S. Securities and Exchange Commission.
The debentures are convertible into Class A ordinary shares at a fixed price of $4.756 per share during the first 50 calendar days after issuance. After this period, the investor may convert at the lower of $4.756 or 93% of the lowest daily VWAP during the five preceding trading days, subject to a floor price of $0.78954.
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