Nature's Miracle Holding Inc. (NASDAQ:NMHI), a company specializing in farm machinery and equipment, announced the full repayment and termination of a material financial obligation on Monday. The California-based firm settled a $180,000 convertible note, along with accrued interest and other fees totaling $212,400, effectively satisfying and concluding the debt instrument.
The note, originally issued under a securities purchase agreement on July 17, 2024, to an unnamed investor, included an original issue discount of $27,500. In addition to the note, the agreement involved a warrant allowing the investor to purchase up to 217,500 shares of the company's common stock at $0.87 per share. As part of the transaction, Nature's Miracle had also issued 180,000 commitment shares to the investor on July 19, 2024.
The termination of the note on July 30, 2024, has released Nature's Miracle from several obligations outlined in the securities purchase agreement. These included offering the purchaser participation rights in future securities offerings and the right to finance any forthcoming debt offerings.
Despite the note's cancellation, the company is still required to provide the investor with the opportunity to register the sale of the shares related to the note, the warrant shares, and the commitment shares for public sale under certain conditions.
This development comes after a previous name change for the company, which was known as LBBB Merger Corp. before September 22, 2022. Nature's Miracle Holding Inc. is now focused on moving forward without the financial encumbrance of the note.
The information in this article is based on a press release statement.
In other recent news, Nature's Miracle Holding Inc. has been active on multiple fronts. The company has settled a significant financial obligation, a $180,000 convertible note, along with accrued interest and other fees totaling $212,400. This move effectively concludes the debt instrument and releases the company from several obligations outlined in the securities purchase agreement.
On the business front, Nature's Miracle secured a $5.1 million sales agreement with What Rebates LLC for its Efinity brand grow lights. This deal is projected to boost the company's gross revenue by the same amount in late 2024. Moreover, Nature's Miracle has entered into an exclusive distribution agreement with Vaighai Agro Products Ltd. to distribute Gro-Med Coco Coir Substrate products across the U.S.
However, the company has mutually agreed with Agrify Corporation to terminate their merger plans due to unfavorable market conditions. This decision cancels all obligations under the original merger and debt purchase agreements without any termination fees. These are the latest developments in the company's operations.
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