Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 221

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 221
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 Cetus Capital, with each warrant exercisable to purchase one ordinary share of MKDWELL Tech Inc. at $ 11.50, subject to adjustment in accordance with the Warrant terms.

On the Closing Date, MKDWELL Tech Inc. consummated the Business Combination pursuant to the terms of the Business Combination Agreement and Cetus Capital became a wholly owned subsidiary of MKDWELL Tech Inc.

As a result of the foregoing, as of August 9, 2024, MKDWELL Tech Inc. had a total of 16,788,342ordinary shares and 6,036,875warrants outstanding. The Business Combination would be accounted for as reverse recapitalizations, the financial statements of the combined company represent a continuation of the financial statements of the target.

The Convertible Note Financing with Investor

On July 24, 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 $4.8million) 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