iCoreConnect Inc. entered into a securities purchase agreement with certain institutional investors for issuance of unsecured convertible notes in the aggregate principal amount of up to $2,375,000 on February 26, 2024. The purchase agreement contemplates funding of the investment across two tranches. At the first closing an aggregate principal amount of $1,375,000 of notes will be issued upon the satisfaction of certain customary closing conditions in exchange for aggregate gross proceeds of $1,250,000.

The company may require that the investors purchase an additional aggregate principal amount of $1,100,000 of notes, in exchange for aggregate gross proceeds of $1,000,000. The notes will mature 12 months from their respective issuance date, unless earlier converted. The notes were issued with an original issue discount of 10% per annum, and will not accrue additional interest during the term; provided that the interest rate of the notes will automatically increase to 16% per annum upon the occurrence and continuance of an event of default.

The notes are convertible into shares at a price of $1.848 per share.