E-Home Household Service Holdings Limited announced that it has entered into a securities purchase agreement with institutional investor for private placement of unsecured convertible promissory note in the principal amount of $3,170,000 at an original issue discount of 4.7% for gross proceeds of $3,020,000 on May 13, 2022. The note bears interest at a rate of 8% per annum and upon the occurrence of a trigger event, investor may increase the outstanding balance payable under the note by 12% or 5%, depending on the nature of such event. If the company fails to cure the trigger event within the required five trading days, the trigger event will automatically become an event of default and interest will accrue at the lesser of 22% per annum or the maximum rate.

The notes have a maturity period of 24 months, expiring May 13, 2024. The investor may convert all or any part of the outstanding balance of the note, up to a maximum amount of $500,000 per month, at any time after six months from the issue date, into ordinary shares of the company at a price equal to 85%.All the securities issued under the transaction are exempt from registration afforded by Section 4(a)(2) of the Securities Act of 1933. The company will pay investor's legal and other transaction costs of $20,000.