China SXT Pharmaceuticals, Inc. Enters into Securities Purchase Agreement to Issue a 6% Convertible Promissory Note in the Original Principal Amount of $2.8 Million
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TAIZHOU, China, March 14, 2022 (GLOBE NEWSWIRE) -- China SXT Pharmaceuticals, Inc. ("SXTC" or the "Company"), (NASDAQ: SXTC), a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces ("TCMPs"), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements ("TCMHS"), today announced that it entered into a securities purchase agreement to issue a convertible promissory note in the original principal amount of $2,804,848.00 to Streeterville Capital, LLC, a Utah limited liability company.
The 12-month note shall bear interest at the rate of 6% per annum. Any time after ninety (90) days of issuance, the investor may elect to convert all or any portion of the note at a fixed conversion price, initially $0.30. Any time after ninety (90) days of issuance, all or any portion of the note may be convertible into ordinary shares of SXTC at a redemption conversion price of the lower of (i) the Lender Conversion Price which is initially $0.30 and (ii)80% of the average of the lowest VWAP during the fifteen (15) trading days immediately preceding the conversion notice is delivered, subject to monthly conversion limitation of $600,000. The investor shall not sell more than 15% of the weekly trading volume in any given week in the open market so long as there is no event of default. The Company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, working capital and other business opportunities.
The closing of the offering is expected to occur on or about March 16, 2022, subject to customary closing conditions.
This offering is being made pursuant to an effective shelf registration statement on Form F-3 (No. 333-252664) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on February 10, 2021. A preliminary prospectus supplement has been filed and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Copies of the securities purchase agreement and the convertible promissory note relating to this financing can be obtained at the SEC's website at www.sec.gov. Before investing in this offering, interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.