Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 209

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 209
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Short-term Bank Borrowings

In February 2025, the Company obtained two short-term loans from Bank of Jiaxing, each amounting to US$ 0.27million with an annual interest rate of 4.5%. These borrowings are expected to be repaid within one year and will be used for general corporate purposes. The acquisition of short-term bank borrowings will increase the Company’s current liabilities.

Amendment to Memorandum and Articles of Association to Increase Authorized Share Capital

On March 5, 2025, the Board of Directors of the Company approved an amendment (the “Amendment”) to the Amended and Restated Memorandum and Articles of Association of the Company (the “Memorandum and Articles”) to increase the authorized share capital to an unlimited amount. The Company estimates that amending the Memorandum and Articles has no financial effect as the Company has not issued new shares as of the date of issuance of the consolidated financial statements.

Entry into Debt Transfer Agreements

On March
13, 2025, Cetus Sponsor LLC, AWinner Limited, and MKD BVI entered into a debt transfer agreement, pursuant to which the debt of US$875,000owed to MKD BVI by Cetus Sponsor LLC was transferred to AWinner Limited. Meanwhile, on March 13, 2025, AWinner Limited
issued an interest-free promissory note with an amount of US$875,000to MKD BVI, with the maturity date being December 31, 2026.

On March
13, 2025, Cetus Sponsor LLC, AWinner Limited, and MKD entered into a debt transfer agreement, pursuant to which Cetus Sponsor LLC transferred
its claim of US$875,000against the Company to AWinner Limited.

The
Company estimates that the execution of debt transfer agreements has no financial impact on the Company’s consolidated financial
statements.

Entry into Debt Conversion Agreements

On March 19, 2025, the Company, entered into three separate debt conversion agreements (the “Debt Conversion Agreements”) with three creditors of the Company, being Mr. Ming-Chia Huang, a director and the chief executive officer of the Company, Ms. Ya-Hui Wu, the spouse of Mr. Huang, and AWinner Limited, which is controlled by Mr. Chung-Yi Sun, a director of the Company, to convert such debts owed into equity of the Company. Among these, (i) an amount of $ 823,100