Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 17

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 17
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 a floor price of $0.178 for the possible future conversions into Ordinary Shares. In the event a conversion notice is delivered where the conversion price is less than the floor price, the Company may satisfy the conversion by payment of the applicable conversion amount multiplied by 110% in cash within two trading days, or alternatively, the Company may reduce the floor price (subject to applicable Nasdaq rules and regulations) to a price at or below the conversion price and deliver the applicable conversion shares. Upon the occurrence of a Trigger Event, Streeterville shall have the right to increase the balance of the Note by 15% for Major Trigger Event and 10% for Minor Trigger Event. In addition, the Note provides that upon the occurrence of an Event of Default, the interest rate shall accrue on the outstanding balance at the rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. The Convertible Note Financing closed on December 9, 2024. The Company received an aggregate purchase price of $1,700,000.

Nasdaq Bid Price Deficiency Letter

On February 10, 2025, the Company received a deficiency letter from Nasdaq that, based upon the closing bid price of the Company’s ordinary shares over the 30 consecutive business day period between December 24, 2024 and February 7, 2025, the Company was not in compliance with the requirement to maintain a minimum bid price of $1.00 per share of its Ordinary Shares for continued listing on The Nasdaq Global Market, as set forth in Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”).

Streeterville Capital Standstill Agreement

On March 3, 2025, the Company entered into a standstill agreement with Streeterville Capital, LLC. Pursuant to the agreement, Streeterville will not redeem any portion of its outstanding note with the Company, dated November 26, 2024 (the “Note”), during the earlier of (a) 60 days from March 3, 2025, or (b) the date on which any registration statement filed by the Company with the SEC in connection with any future fundraising transaction is declared effective. In consideration for the standstill, the Company will pay Streeterville a standstill fee equal to 2% of the outstanding balance of the Note (the “Standstill Fee”). As of March 3, 2025, the outstanding balance of the Note, inclusive of the Standstill Fee,