Nature's Miracle Holding Inc., a Delaware-based company specializing in farm machinery and equipment, disclosed in a recent SEC filing that it entered into a material definitive agreement with an investor. The transaction involved the issuance of a convertible promissory note on September 18, 2024, with the offering closing two days later.
Under the terms of the agreement, the investor purchased a note with a principal amount of $107,880, which included an original issue discount of $14,880. The note carries a one-time interest charge of 13% and mandates repayment in five installments, starting with $60,952 due on March 15, 2025, followed by four subsequent payments of $15,238 each.
In the event of default, the company is required to pay the investor an amount equal to 150% of the sum of the outstanding principal, accrued interest, and any default interest at an annual rate of 22%.
Additionally, the investor has the right to convert the unpaid principal into restricted shares of the company's common stock at a 25% discount to the market price, should an event of default occur. However, the conversion is capped to ensure the investor does not exceed ownership of 4.99% of the company's total outstanding common stock.
Nature's Miracle Holding has agreed to reserve four times the number of shares that may be issuable upon conversion of the note to accommodate potential conversions. The company's common stock and warrants are listed on The Nasdaq Stock Market under the symbols NMHI and NMHIW, respectively.
This strategic financial move comes as Nature's Miracle Holding continues to navigate the competitive landscape of the farm machinery and equipment industry. The company, formerly known as LBBB Merger Corp., changed its name on September 22, 2022. It is headquartered in Ontario, California, and the information disclosed is based on the company's recent SEC filing.
In other recent news, Nature's Miracle Holding has been active in reshaping its financial landscape and business operations. The company has successfully settled a substantial financial obligation, a $180,000 convertible note, and secured another convertible promissory note worth $181,700. An executive transition has also taken place, with Chief Operating Officer Darin Carpenter stepping down and transitioning to a consulting role.
Nature's Miracle Holding has been proactive in revenue generation, securing a $5.1 million sales agreement with What Rebates LLC for its Efinity brand grow lights, and a $2.4 million purchase order for the same product from a leading indoor grower in California. Both deals are expected to significantly boost the company's revenue in late 2024.
The company has also secured an exclusive distribution agreement with Vaighai Agro Products Ltd. to distribute Gro-Med Coco Coir Substrate products across the U.S. However, Nature's Miracle Holding and Agrify Corporation have mutually agreed to terminate their merger plans due to unfavorable market conditions.
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