Avalon GloboCare Corp. announced that it has entered into a securities purchase agreement to issue 13% senior secured promissory notes in the aggregate principal amount of $2,845,000.00 issued at a discount of $142,250.00 for the gross proceeds of $2,702,750.00 on June 5, 2024. The notes will have a coupon rate of 13% and a maturity date of 12 months from issuance, that is, June 5, 2025.

The note will be convertible into common shares at a price of $0.75 per share. The company also issued a warrant to purchase 1,000,000 shares of common stock with an exercise price of $0.65 exercisable until the five-year anniversary of the Closing Date (the ?First Warrant?), (ii) a warrant to purchase 1,200,000 shares of common stock with an exercise price of $0.50 exercisable until the five-year anniversary of the Closing Date, which warrant shall be cancelled and extinguished against payment of the Notes (the ?Second Warrant? and collectively with the First Warrant, the ?Warrants?), and (iii) 402,000 shares of common stock to investor as additional consideration for the purchase of the Note.

The transaction included participation from returning investor, Mast Hill Fund, L.P., a fund managed by, Mast Hill Management, LLC.