MicroAlgo Inc., a technology firm based in Shenzhen, China, has entered into Convertible Note Purchase Agreements with certain investors on October 7, 2024. The following day, the company issued Unsecured Convertible Promissory Notes totaling $20 million with a term of 360 days and an original issue discount of $1.6 million. These notes give investors the option to convert their debt into ordinary shares of MicroAlgo at a conversion price based on a formula tied to the market closing price of the shares. The conversion is subject to certain adjustments and an ownership limitation that prevents any investor from owning more than 9.99% of the outstanding shares post-conversion. In the event of default, the interest rate on the outstanding balance increases to 10% per annum. MicroAlgo plans...Show More

MicroAlgo Inc., a technology firm based in Shenzhen, China, has entered into Convertible Note Purchase Agreements with certain investors on October 7, 2024. The following day, the company issued Unsecured Convertible Promissory Notes totaling $20 million with a term of 360 days and an original issue discount of $1.6 million. These notes give investors the option to convert their debt into ordinary shares of MicroAlgo at a conversion price based on a formula tied to the market closing price of the shares. The conversion is subject to certain adjustments and an ownership limitation that prevents any investor from owning more than 9.99% of the outstanding shares post-conversion. In the event of default, the interest rate on the outstanding balance increases to 10% per annum. MicroAlgo plans to use the net proceeds for working capital and general corporate purposes. The agreements and notes are summarized in the report and are attached as exhibits to the company's current report on Form 6-K, which is incorporated by reference into the company's registration statement on Form F-3. The CEO of MicroAlgo, Min Shu, signed the report on October 9, 2024.