Color Star Technology Co., Ltd. announced that it has entered into a securities purchase agreement with new investor Streeterville Capital, LLC on July 11, 2023. The company will issue an unsecured promissory note in the original principal amount of $1,100,000.00 for gross proceeds of $1,020,000 in the transaction. The promissory note will be convertible into Class A ordinary shares, $0.04 par value per share, of the company.

The note bears a simple interest at a rate of 8% per annum. All outstanding principal and accrued interest on the note will become due and payable twelve months after the purchase price of the note is delivered by investor to the company. The net proceeds received by the company in transaction is $1,000,000 after deducting original issue discount of $80,000 along with $20,000 for Investor’s fees, costs and other transaction expenses incurred in connection with the purchase and sale of the note.

The company may prepay all or a portion of the note at any time by paying 120% of the outstanding balance elected for pre-payment. The Investor has the right to redeem the note at any time after the date that is six months from the purchase price date by providing the company with a redemption notice. The company has a option to redeem the promissory note in cash or ordinary shares of the company.

In case of default, the interest rate shall accrue on the outstanding balance at the rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. The issuances of the note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933.