Company: NCL
Filing Date: 2025-01-29
Form Type: S-1/A
Source: 0001575872-25-000097
Chunk: 89

Company: Northann Corp.
Filing Date: 2025-01-29
Form: S-1/A
Chunk 89
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 the outstanding principal amount
or convert all or a portion of the outstanding principal amount. If at any time following the six months’ anniversary of the final
closing date or termination of the offering and if there is an effective registration statement permitting the issuance of the Conversion
Shares to or resale of the Conversion Shares by the holders, (A) the Company’s common stock is listed on a senior national securities
exchange, (B) the daily VWAP for the prior 20 consecutive trading days is $8.00 or more (adjusted for splits and similar distributions)
and (C) the daily trading volume is at least $1,000,000 during such 20-day period, then the Company shall have the right to require the
holders to convert all or any portion of the principal and accrued interest then remaining under the Convertible Debentures into shares
of common stock at the conversion price then in effect.

| II-1 |

On April 27, 2023, the holders of the Convertible
Debentures and the Company entered into amendments to the Convertible Debentures. Pursuant to the amendment, Northann Corp. agreed to
pay the principal and accrued interest of the Convertible Debentures in cash on or before the earlier of July 12, 2023 or the three months’
anniversary of the completion of this offering, and the holders agreed to not convert the Convertible Debentures. As of the date of this
prospectus, the Convertible Debentures have not been converted in any shares of common stock of the Company and the Company has not repaid
any principal or accrued interest of the Convertible Debentures.

The Warrants are exercisable from time to time
in whole or in part from the date of issuance until the five-year anniversary of the date of issuance. The Warrants can be exercised on
a cashless or a cash basis. The initial exercise price of the Warrants is $7.00 per share and shall be adjusted to the lower of (i) 70%
of the offering price in a future equity financing with gross proceeds of not less than $5,000,000, or (ii) $7.00, subject to further
adjustments thereunder, including a Price Protection Adjustment.

Univest Securities, LLC was the placement agent
for the Convertible Debentures and the Warrants offering. The Company paid Univest Securities, LLC a total cash fee equal to 7% of the