Company: NCL
Filing Date: 2025-10-24
Form Type: S-1/A
Source: 0001575872-25-000638
Chunk: 91

Company: Northann Corp.
Filing Date: 2025-10-24
Form: S-1/A
Chunk 91
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,000,000 (the “Convertible Debentures”) that are convertible into shares of common stock of Northann Corp. (the
“Conversion Shares”) and warrants to purchase up to 17,857 shares of common stock of Northann Corp. (the “Warrants”
and such shares underlying the Warrants, the “Warrant Shares”).

The Convertible Debentures have a maturity date
of 24 months after the issuance thereof and bear interest at the rate of 7% per annum. The Convertible Debentures are convertible after
the six-month anniversary of the date of issuance or earlier if a registration statement covering the Conversion Shares has been declared
effective until the Convertible Debentures have been paid in full or converted in full, at an initial conversion price of $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 reduction in the conversion price, in the event of a
subsequent offering at a price less than the then current exercise price, to the same price as the price in such offering (a “Price
Protection Adjustment”). If Northann Corp. is not able to or ceases to be eligible for quotation or listed on a trading market within
12 months from the issuance of the Convertible Debentures, the holders may demand the Company to pay all 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.

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On April 27, 2023