Company: SHPH
Filing Date: 2025-04-21
Form Type: DEFR14A
Source: 0001641172-25-005474
Chunk: 43

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-04-21
Form: DEFR14A
Chunk 43
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,000.

Purchase Agreement

The Purchase Agreement offered for sale up to $1.3 million in Convertible Notes and Warrants equal to 45% of the shares of common stock into which each Convertible Note is convertible into, with each Warrant exercisable at 125% of the closing price of the Company’s common stock on the date immediately preceding closing. The Purchase Agreement contained certain representations and warranties, covenants and indemnities customary for similar transactions. In addition, we agreed to register the shares issuable upon conversion of the Convertible Note or exercise of the Warrants within three months of closing of the transaction.

Senior Secured Convertible Note

General

The Convertible Notes were issued to investors in two batches, on October 14 and 21, 2024, and mature 12 months following the respective closing date (the “Maturity Date”).

Interest

The Convertible Notes bear interest at a rate of 14.5% per annum, calculated on the basis of a 360-day year and actual days elapsed. Interest shall be repaid in cash quarterly in arrears.

Optional Prepayment

At any time prior to the Maturity Date, upon 10 days’ notice to the Investor, the Company may prepay any unpaid principal balance due to Investor hereunder at a 107% premium.

Conversion

Mandatory Conversion. Upon Maturity, the Convertible Notes shall either (i) be paid in cash by the Company or in the event there is an effective registration statement in place (ii) automatically convert, in whole, without any further action by Investor, into shares of common stock, par value $0.00001 per share, of the Company based on the outstanding principal amount hereof at a conversion price equal to the lower of a 15% discount to (i) $1.12072 per share for the Notes closed October 14, 2024 and $1,17694 per share for the Notes closed on October 21, 2024, or (ii) the price of any offering entered into by the Company during the term of the Note.

Optional Conversion. Each Lender may convert at any point after January 14, 2025 or January 21, 2025 depending on the Note closing date (three months after the Issuance Date), or after such period as may be required of the placement agent participating in the Company’s registered follow-on offering, either all or a portion of the principal amount due under this Note at a conversion premium