Item 3.02 Unregistered Sales of
On
The outstanding principal amount of the Redstart Note may not be converted prior to the period beginning on the date that is 180 days following the Issue Date. Following the 180thday, Redstart may convert the Redstart Note into shares of the Company's common stock at a conversion price equal to 85% of the lowest trading price with a 20 day look back immediately preceding the date of conversion. In addition, upon the occurrence and during the continuation of an Event of Default (as defined in the Redstart Note), the Redstart Note shall become immediately due and payable and the Company shall pay to Redstart, in full satisfaction of its obligations hereunder, additional amounts as set forth in the Redstart Note.
The issuances of the Redstart Note was made in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), pursuant to Section 4(a)(2) of the Act.
In no event shall Redstart be allowed to effect a conversion if such conversion, along with all other shares of Company common stock beneficially owned by Redstart and its affiliates would exceed 4.9% of the outstanding shares of the common stock of the Company. The foregoing description of the terms of the above transactions do not purport to be complete and are qualified in their entirety by reference to the provisions of such agreements, the forms of which are filed as exhibits to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
Exhibit Number Description 4.1 Convertible Promissory NoteAugust 4, 2020 issued toRedstart Holdings Corp. 10.1 Securities Purchase Agreement datedAugust 4, 2020 betweenGBT Technologies Inc. andRedstart Holdings Corp. 2
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