Company: QTIWW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001844505-25-000053
Chunk: 99

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part II, Item 1A
Chunk 99
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 Securities Act as a transaction not involving a public 

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offering and Rule 506(b) of Regulation D promulgated under the Securities Act as sales to accredited investors and in reliance on similar exemptions under applicable state laws.

Securities Purchase Agreement

The Recanati Securities Purchase Agreement contains customary representations, warranties, and covenants of the Company and the Purchaser, and customary closing conditions, indemnification rights, and other obligations of the parties. The May 2025 Private Placement is expected to be closed by May 19, 2025. Under the Recanati Securities Purchase Agreement, the Company agreed to use the net proceeds from the sale of the Recanati Securities for working capital purposes and to not use such proceeds: (a) for the redemption of any Common Stock or Common Stock Equivalents (as defined in the Recanati Securities Purchase Agreement), or (b) in violation of the Foreign Corrupt Practices Act of 1977, as amended, or the regulations promulgated by the Office of Foreign Assets Control of the U.S. Treasury Department. The Recanati Securities Purchase Agreement is governed by the laws of the State of New York.

The foregoing summary of the Recanati Securities Purchase Agreement is qualified in its entirety by reference to the Recanati Securities Purchase Agreement, a copy of which is filed with this Quarterly Report as Exhibit 10.10, and the terms of which are incorporated in this Quarterly Report by reference.

Warrants

The Recanati Warrant will be exercisable for 205,339 shares of Common Stock at an exercise price of $1.12 per share, and be exercisable beginning 6 months after its issuance at the closing of the Private Placement and ending 5 years after such issuance.

The foregoing summary of the Recanati Warrants is qualified in its entirety by reference to the forms of Recanati Warrant which is attached as Exhibit C to Exhibit 10.10 filed with this Quarterly Report, the terms of which are incorporated in this Quarterly Report by reference.

Registration Rights Agreement

In connection with the May 2025 Private Placement, the Company entered into a Registration Rights Agreement with the Purchaser, dated May 12, 2024 (the “Recanati Registration Rights Agreement”). The Recanati Registration Rights Agreement provides that the Company shall file a registration statement covering the resale of all Registrable Securities (as defined in the Recanati Registration Rights Agreement) with the Securities Exchange Commission (the “SEC”) no later than the