Color Star prices initial $7M tranche of senior secured convertible notes

Color Star Technology announced it has entered into securities purchase agreements with certain institutional investors to purchase senior secured convertible notes in the aggregate principal amount of $7.6 million having an original issue discount of 8% and a maturity of twelve months from issuance, resulting in net proceeds to the Company of approximately $7,000,000. The Convertible Notes will bear an interest rate of 6.0% per annum and will be convertible 45 days after the date of the First Closing, subject to certain conditions, into Class A Ordinary Shares of the Company at an initial conversion price equal to the lower of $1.60, or the Alternative Conversion Price, as set forth in the Convertible Notes. This First Closing is expected to occur on or about September 30, 2024, subject to the satisfaction of customary closing conditions. Under the terms of the securities purchase agreements, the Convertible Notes will be issued to the Investors, together with registered warrants to purchase up to an aggregate of approximately 2.9 million Ordinary Shares. The warrants to be issued at the First Closing will be exercisable 45 days after issuance, subject to certain conditions will expire on the five-year anniversary of the Initial Exercise Date, and will have an exercise price of $1.60 per share and contain certain anti-dilution provisions. Maxim Group LLC is acting as the sole placement agent in connection with the offering.