Summary by Moomoo AI
On April 5, 2024, Novo Integrated Sciences, Inc. entered into a securities purchase agreement with Streeterville Capital, LLC, issuing a secured convertible promissory note with a principal sum of $6,210,000, maturing on April 8, 2025. The note includes an original issue discount of $660,000 and a 10.9% annual interest rate. Streeterville paid $5,500,000 for the note, with $50,000 withheld for transaction costs. Novo Integrated Sciences used the proceeds to repay outstanding promissory notes totaling $3,777,777.77. The note allows Streeterville to convert the debt into common stock under certain conditions and includes redemption rights starting October 8, 2024. The company also entered into a security agreement, granting Streeterville a security interest in all company assets. Subsidiaries Acenzia Inc. and Novo Healthnet Limited provided guarantees and security interests in their assets. The company is required to seek shareholder approval for the transaction within six months and must repay the note in cash if approval is not obtained within nine months. The agreement includes customary representations, warranties, covenants, and registration rights for the common stock underlying the note.