Company: GRCE
Filing Date: 2025-02-10
Form Type: 8-K
Source: 0001140361-25-003645
Chunk: 2

Company: Grace Therapeutics, Inc.
Filing Date: 2025-02-10
Form: 8-K
Item: Item 1.01
Chunk 2
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30 days after the effective date of the registration statement filed pursuant to the Registration Rights Agreement (the “ Restricted Period”), (i) issue shares of Common Stock or Common Stock equivalents, (ii) effect a reverse stock split,
recapitalization, share consolidation, reclassification or similar transaction affecting the outstanding Common Stock or (iii) file with the SEC a registration statement under the Securities Act of 1933, as amended (the “ Securities Act”) relating
to any shares of Common Stock or Common Stock equivalents, except pursuant to the terms of the Registration Rights Agreement.

Each Warrant will be exercisable at any time and from time to time on or after the original issue date. Holders of the Warrants will not have the right
to exercise any portion of its Warrants if such holder, together with its affiliates, would beneficially own in excess of 4.99% or 9.99% (at the initial election of the holder) of the number of shares of the Company’s Common Stock outstanding
immediately after giving effect to such exercise (the “ Beneficial Ownership Limitation”); provided, however, that a holder may increase or decrease such Beneficial Ownership Limitation up to, and no higher than, 19.99%, by giving 61 days’ notice
to the Company. As more fully described in the Warrants, if a Fundamental Transaction (as defined in the Warrants) occurs, then the successor entity will succeed to, and be substituted for the Company, and may exercise every right and power that
the Company may exercise and will assume all of the Company’s obligations under the Warrants with the same effect as if such successor entity had been named in the Warrants itself. If holders of Common Stock are given a choice as to the
securities, cash or property to be received in such a Fundamental Transaction, then the holder shall be given the same choice as to the consideration it would receive upon any exercise of the Warrants following such a Fundamental Transaction.

The Shares, the Warrants and the Warrant Shares are being sold and issued without registration under the Securities Act in reliance on the exemptions
provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors.

The foregoing descriptions of the Purchase Agreements, the Registration Rights Agreement, the Pre-Funded Warrants and the Common Warrants are not complete
and are qualified in their entirety by reference to the full text