On December 14, 2022, Avalon GloboCare Corp. closed the transaction. The company announced that it has issued 4,000 shares for gross proceeds of $4,000,000 in its second tranche.

The transaction included participation from company?s Chairman, Daniel Lu. The company intends to raise an additional $6,000,000 through the sale of additional shares of series A preferred shares in order to fund the remaining portion of the purchase price to consummate the closing of the transaction within the extension period. All holders of the series A preferred stock will be restricted from selling the shares of common stock issuable upon conversion of the series A preferred shares for a period of 9 months and will be limited to selling no more than 10% of their shares of common stock in any calendar month.

The securities were offered in a private placement pursuant to an applicable exemption from the registration requirements of the pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder.