Alfi, Inc. announced that it has entered into a credit and security agreement for private placement of a non-revolving line of credit, up to an aggregate principal amount of $2,500,000 with Lee Aerospace, Inc. on April 12, 2022. The entire outstanding principal amount borrowed under the Credit Agreement, together with all accrued and unpaid interest on such borrowings outstanding from time to time, is due and payable on the earlier of the date upon which the company consummates a debt or equity financing in an amount equal to or greater than $4,000,000 or April 12, 2023. Interest on the unpaid principal amount borrowed under the Credit Agreement accrues at an annual rate of 6% through October 12, 2022, and at an annual rate of 9% thereafter; provided, however, that upon the occurrence of an event of default, additional interest at an annual rate of 3% will accrue on all borrowings through October 12, 2022. All or part of the outstanding principal amount borrowed under the Credit Agreement may be prepaid at any time without penalty or premium, provided that such prepayments must be accompanied by the payment of all interest accrued on the amount so prepaid through the date of prepayment. The principal amount so prepaid may not be reborrowed under the terms of the Credit Agreement. All of the Company's obligations under the Credit Agreement and all related documents are secured by a first lien on substantially all of the company's assets, whether now owned or hereafter acquired. The company also issued a warrant to purchase up to 1,250,000 shares of the common stock at any time, or from time to time, on or after July 12, 2022 and prior to April 12, 2025. at an exercise price of $1.51 per share of common stock. The warrant may be exercised for cash or on a cashless basis, and the exercise price of the warrant is subject to anti-dilution adjustments for stock splits, stock dividends and similar corporate actions, but not for other dilutive equity issuances. the warrant also provides for certain “piggy back” registration rights to the lender if, at any time prior to the six-month anniversary of the expiration date, the company shall determine to register on a new registration statement any shares of common stock for resale for the account of selling stockholders, subject to certain exceptions. The company will issue warrants pursuant to exemption provided under Regulation D.

On the same date the company received $600,000 in its first tranche.