Core Viewpoint - Eshallgo Inc has entered into a securities purchase agreement to issue convertible debentures totaling up to $5,000,000, with an annual interest rate of 5%, which increases to 18% in case of default, maturing on November 28, 2025 [1][3]. Group 1: Securities Purchase Agreement Details - The initial closing of $1,500,000 occurred on November 29, 2024, with subsequent closings of $2,000,000 and $1,500,000 contingent upon SEC registration [2]. - The debentures can be converted into Class A ordinary shares at a fixed price of $4.756 per share for the first 50 days, after which the conversion price may be adjusted based on the lowest daily VWAP [3]. - If certain conditions are met, including a drop in daily VWAP below a specified floor price, the company may be required to make monthly payments of up to $1,000,000 plus a 10% premium and accrued interest [3]. Group 2: Fees and Registration - The company will pay a 1% commitment fee upon the effectiveness of the registration statement, and a one-time due diligence and structuring fee of $25,000 was paid at the initial closing [4]. - The debentures were issued as a private placement under an exemption from registration, and the company has committed to filing a registration statement with the SEC within 21 days [5][6]. Group 3: Company Overview - Eshallgo Inc is a leading office solution provider in China, specializing in office supply sales, leasing, and after-sale maintenance and repair, with a presence across 20 provinces [7].
Eshallgo Inc Secures $5 Million through Convertible Debenture Offering