Propanc Biopharma : Material Agreement - Form 8-K

Item 1.01 Entry into a Material Definitive Agreement.

Effective April 16, 2024, Propanc Biopharma, Inc. (the "Company") entered into and closed a securities purchase agreement (the "Purchase Agreement") with an investor (the "Investor"), pursuant to which the Investor agreed to purchase a convertible promissory note from the Company in the aggregate principal amount of $27,500 (the "Note"), for a purchase price of $25,000. The Company intends to use the net proceeds therefrom for general working capital purposes.

The Investor is entitled, at its option, at any time after cash payment, to convert any or all or any amount of the principal face amount of the Note then outstanding into shares of the Company's common stock (the "Common Stock") at a price for each share of Common Stock at a price ("Conversion Price") of $0.0017 per share (the "Fixed Price"). Provided, however, that in the event the Company's Common Stock trades below $0.0014 per share for more than five (5) consecutive trading days, then the Fixed Price shall be equal to $0.001 per share. In the Event of Default (as defined in the Note), the Conversion Price shall be equal to the lowest trading price of the Common Stock as reported on the OTC Markets on which the Company's shares are then traded or any exchange upon which the Common Stock may be traded in the future, for the ten prior trading days immediately preceding the date of the Event of Default (the "Alternate Fixed Price"). The Alternate Fixed Price shall be re-adjusted every 30 calendar days if the Company is still in default using the formulae set forth above.

The maturity date of the Note is October 12, 2024 and the Note bears interest at a rate of eight percent (8%) per annum, which may be increased to twenty four percent (24%) in the Event of a Default. During the first 60 days following the date of the Note, the Company has the right to prepay the principal and accrued but unpaid interest due under the Note, at a one hundred ten percent (110%) premium of the face amount plus accrued and unpaid interest, which increases to (i) one hundred twenty percent (120%) if prepaid after 60 days, but less than 121 days from the issuance date, (iii) one hundred twenty five percent (125%) if prepaid after 120 days, but less than 181 days from the issuance date. After this initial 180-day period, the Company does not have a right to prepay the Note.

The Note contains certain events of default, including failure to pay principal and interest when due, failure to timely issue the Conversion Shares, failure to maintain the listing of the Common Stock on at least one of the OTC markets (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, failure to comply with its reporting requirements with the U.S. Securities and Exchange Commission, a breach of certain covenants in the Purchase Agreement, default by the Company under any other note issued to the Investor, as well as certain customary events of default set forth in the Note, including, among others, breach of covenants, representations or warranties, insolvency, bankruptcy, and liquidation. Upon an event of default, the Note will become immediately due and payable by the Company.

The foregoing descriptions of each of the Purchase Agreement and the Note do not purport to be complete and are qualified in their entirety by reference to the full text of each of the Purchase Agreement and the Note, which are filed as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K (this "Form 8-K") and are incorporated herein by reference.