Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 437

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 437
---
 agreement (representing 47,923,322 shares of our common stock), or a combination of common stock and
preferred stock to be determined by the parties, along with additional milestones allowing Oncotelic to earn up to an additional $15.0
million in shares of common stock that would be valued at the time of issuance, if earned. Pursuant to the Binding Term Sheet, we and
Oncotelic agreed to negotiate in good faith towards the execution of a definitive agreement and the closing of the transaction within
ninety (90) days, which is subject to customary due diligence and other conditions, including us obtaining shareholder approval for the
transaction and receiving waivers from our holders of Convertible Notes representing at least 90% of the principal amount outstanding
from any payment that would become due and payable upon a corporate transaction as contemplated under the Binding Term Sheet.

 30 

In addition, under the Binding Term Sheet, (i) we
will continue the development work necessary to achieve the mutually agreed upon milestones upon the requisite funding, (ii) Oncotelic
will provide a loan to us to cover certain operational costs of the Company initially through June 2024, (iii) Oncotelic will assist the
Company in potentially raising initial funding to support the technologies of $2 million, and (iv) in the event the Company is unable
to raise the requisite funding, then the transaction may proceed to a reverse acquisition/merger, with conditions typical of such a transaction.

If we enter into a definitive agreement under the
terms of the Binding Term Sheet, our present stockholders will experience immediate substantial dilution and will not have control of
our majority voting securities. In addition, if we do not receive shareholder approval for a possible transaction by Juen 30, 2025, as
amended, we may not be able to enter into a definitive agreement with Oncotelic, and we may need to cease our operations altogether. Currently,
we and Oncotelic are continuing to pursue a potential transaction under the Binding Term Sheet although there are no guarantees we will
enter into any definitive agreement. On December 31, 2024, the expiration date to enter into a possible transaction with Oncotelic was
extended to June 30, 2025. 

On November 18, 2024, we entered into an unsecured
convertible promissory note (“Note Purchase Agreement”) with an accredited investor (“Investor”) for proceeds
of up to $200,