EF Hutton Acquisition Corporation I announced that it has entered into a definitive securities purchase agreement with an institutional investor for the issuance of a senior secured convertible note in the principal amount of $15,819,209 for the gross proceeds of approximately $13,700,000 on October 6, 2023. The note will be issued in connection with the closing of the company?s proposed business combination. The note accrues interest at an annual rate equal to the prime interest rate plus 5% per annum which is payable monthly in cash or, upon the company?s option, in securities of the company, provided certain conditions are met, at the increased interest rate of prime interest rate plus 8% per annum.

Subject to the terms of the note, the principal amount due under the Note, plus any accrued and unpaid interest, and accrued and unpaid late charges on such principal and interest, if any, is convertible into shares of the company?s common stock at the option of the Lender at a conversion price of $10 per share, subject to adjustment. The note is secured by all the company?s assets. The closing of the transactions contemplated by the securities purchase agreement are subject to standard closing conditions, including the approval of the business combination by stockholders.