Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 79

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 79
---
 Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have
been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is theretofore
unenforceable.

Item 15. Recent Sales of Unregistered Securities.

The information in this section reflects a 2-for-1
reverse split of our issued and outstanding shares of common stock and Series A Preferred Stock, effected on July 5, 2023.

Founding Transactions

Northann Corp. was incorporated on March 29, 2022. In
connection with the incorporation, on April 25, 2022, Northann Corp. issued a total of 5,570,000 shares of common stock to 12 stockholders,
each one of which holds less than 5% of the total issued and outstanding common stock as of the date of this registration statement. The
transaction was not registered under the Securities Act in reliance on an exemption from registration set forth in Section 4(a)(2) and/or
Regulation D and/or Regulation S thereof.

Convertible Debentures and Warrants

On May 12, 2022, the Company entered into a securities
purchase agreement with certain investors, pursuant to which the Company sold the investors convertible debentures in an aggregate principal
amount of $1,000,000 (the “Convertible Debentures”) that are convertible into shares of common stock of Northann Corp. (the
“Conversion Shares”) and warrants to purchase up to 142,858 shares of common stock of Northann Corp. (the “Warrants”
and such shares underlying the Warrants, the “Warrant Shares”).

The Convertible Debentures have a maturity date
of 24 months after the issuance thereof and bear interest at the rate of 7% per annum. The Convertible Debentures are convertible after
the six-month anniversary of the date of issuance or earlier if a registration statement covering the Conversion Shares has been declared
effective until the Convertible Debentures have been paid in full or converted in full, at an initial conversion price of $7.00 per share
and shall be adjusted to the lower of (i) 70% of the offering price in a future equity financing with gross proceeds of not less than
$5,000,000, or (ii) $7.00, subject to further adjustments thereunder, including a reduction in the conversion price,