On October 8, 2019 Propanc Biopharma, Inc., a Delaware corporation (the "Company"), reported that it has entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") whereby an investor (the "Investor") purchased from the Company, for a purchase price of $125,000 (the "Purchase Price") a Convertible Redeemable Promissory Note, in the principal amount of $131,000 (the "Note") (Filing, 8-K, Propanc, OCT 8, 2019, View Source [SID1234540948]). The Purchase Price was funded on October 2, 2019.
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The Securities Purchase Agreement contains such representations, warranties and covenants as are typical for a transaction of this nature.
Convertible Redeemable Promissory Note
The Note is due and payable on October 1, 2020 (the "Maturity Date") and entitles the holder to 8% interest per annum (the "Interest Rate"). The Note may be converted into shares of the Company’s common stock equal to 40% discount of the lowest closing bid price of the Common Stock, for the ten trading days immediately prior to the delivery of a notice of conversion; provided, however, such conversion shall not be effected to the extent that the Investor together with any of its affiliates would beneficially own in excess of 4.99%, which may be increased up to 9.99% upon 60 days’ prior written notice by the Investor to the Company. The Company may redeem the Note prior to April 2, 2020, as follows: (i) if the redemption occurs within the first 60 days then an amount equal to 115% of the face amount of the Note plus any accrued interest, (ii) if the redemption occurs after the 61st day but on or before the 120th day following the issuance of the Note, then an amount equal to 125% of the face amount of the Note along with any accrued interest, (iii) if the redemption occurs after the 121st day but on or before the 180th day following the issuance of the Note, then an amount equal to 135% of the face amount of the Note along with any accrued interest.
In the event of a default, without demand, presentment or notice, the Note shall become immediately due and payable.
The foregoing provides only brief descriptions of the material terms of the Securities Purchase Agreement and the Note, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the full text of the forms of Securities Purchase Agreement and the Note, respectively, filed as exhibits to this Current Report on Form 8-K, and are incorporated herein by reference.