Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 179

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 179
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, 2024, MKD Taiwan and its subsidiary MKD Jiaxing (the “Borrower”) entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with an investor (the “Investor”), pursuant to which the Investor agreed to purchase from the Borrower a convertible promissory note in the aggregate principal amount of RMB 35,000,000(approximately $ 4.8million) (the “Convertible Note”) (the “Convertible Note Financing”) with a 10% annual non-compound interest.

The Convertible Note Financing closed on August 12, 2024 and the Borrower received gross proceeds of RMB 35,000,000(approximately $ 4.8million). Under the Securities Purchase Agreement, the Company would issue an additional 150,000of its ordinary shares to the Investor within ten business days after the Investor receives and provides to the Company the applicable permit or approval from the People’s Republic of China authority with respect to the foreign currency exchange regulations to hold such shares, including such required approval pursuant to SAFE Circular No. 37.

On January 14, 2025, the parties to the
Securities Purchase Agreement executed a Termination Agreement dated January 14, 2025 and agreed to terminate the Securities
Purchase Agreement and the Convertible Note and release each other party from all other claims and liabilities. The note proceeds of
RMB35,000,000
(approximately $4.8
million) have been repaid to the Investor. As of the date of the issuance of the consolidated financial statements, the Company is
in negotiations with the Investor regarding the interest expenses that the Company is obligated to incur and the additional 150,000
ordinary shares to be issued. The Company is currently evaluating the impact of the transaction of the convertible note financing with investor
will have on its consolidated financial statements and related disclosures.

Amended Satisfaction and Discharge Agreement with D. Boral Capital LLC

On July 24, 2024, Cetus Capital, MKD Taiwan, MKD BVI, the Company, and D. Boral Capital LLC (formerly known as EF Hutton LLC) entered into an Amended Satisfaction and Discharge Agreement, pursuant to which the Company and its subsidiaries agreed, among others, that (i) Cetus Capital and/or the MKD Parties (as defined in the Amended Satisfaction and Discharge Agreement) shall wire $ 862,500to D. Boral Capital LLC;