Company: IMG
Filing Date: 2025-02-25
Form Type: DEF 14C
Source: 0001493152-25-008207
Chunk: 5

Company: CIMG Inc.
Filing Date: 2025-02-25
Form: DEF 14C
Chunk 5
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 convertible note and warrant purchase agreement dated December 12, 2024 (the “Purchase Agreement”) and the conversion of notes and exercise of warrants sold thereunder.

Background

On December 12, 2024, the Company entered into a convertible note and warrant purchase agreement (the “Purchase Agreement”) with certain non U.S. investors (the “Investors”), providing for the private placement of convertible promissory notes in the aggregate principal amount of $10,000,000 (the “Notes”) and warrants (the “Warrants”) to purchase up to an aggregate of 25,641,023 shares of the Company’s common stock, par value $0.00001 per share (the “Common Stock”) in reliance on the registration exemptions of Regulation S.

The Notes bear interest at an annual rate of 7% and have a maturity date of one year from the issuance date. The Notes shall not be converted, and the Warrants shall not be exercised until the Company obtains shareholder approval for the issuance of shares underlying the Notes and the Warrants. Upon obtaining such approval, the holder may convert the Notes into a number of shares of Common Stock equal to (i) the outstanding principal amount of the Notes, plus any accrued but unpaid interest, divided by (ii) $0.52, the conversion price, while the Warrants may be exercised at an exercise price of $0.39 to purchase up to 25,641,023 new shares of Common Stock.

The closings of the sale of the Notes and Warrants occurred on January 16, 2025 and January 17, 2025 (the “Closings”). Pursuant to the Purchase Agreement, the Company issued six Notes with an aggregate principal amount of $10,000,000 to six non-U.S. investors, following receipt of the respective purchase amounts. In conjunction with the issuance of the Notes, the Company also issued Warrants to purchase an aggregate of 25,641,023 shares of common stock to these investors. Upon the completion of the foregoing, the sale of all Notes and Warrants, in the aggregate principal amount of $10,000,000, pursuant to the Purchase Agreement, has been duly consummated and closed.

The securities potentially issuable pursuant to the Notes include up to 19,230,769 shares of the Company’s common stock issuable upon conversion of the Convertible Notes at a conversion price of $0.52 (or up to 20,576,923 shares of the Company’s