Company: MKDWW
Filing Date: 2025-02-21
Form Type: F-1/A
Source: 0001493152-25-007784
Chunk: 226

Company: MKDWELL Tech Inc.
Filing Date: 2025-02-21
Form: F-1/A
Chunk 226
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 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 to incur and the additional
150,000ordinary shares to be issued. The Company is currently evaluating the impact of the transaction of the convertible note financing
with investor will have on its consolidated financial statements and related disclosures.

Amended Satisfaction and Discharge Agreement with D. Boral Capital LLC

On July 24, 2024, Cetus Capital, MKD Taiwan, MKD BVI, the Company, and D. Boral Capital LLC (formerly known as EF Hutton LLC) entered into an Amended Satisfaction and Discharge Agreement, pursuant to which the Company and its subsidiaries agreed, among others, that (i) Cetus Capital and/or the MKD Parties (as defined in the Amended Satisfaction and Discharge Agreement) shall wire $ 862,500to D. Boral Capital LLC; and Cetus Capital and/or the MKD Parties shall cause to be transferred or issued to D. Boral Capital LLC (or its designees) 115,000Ordinary Shares (which was agreed to have an agreed value of $ 10per share