Item 1.01 Entry into a Material Definitive Agreement

On April 12, 2023, H-Cyte, Inc., (the "Company") and three investors entered into a Securities Purchase Agreement (the "SPA"), whereby, the Company sold and issued to the certain investors, an aggregate of one hundred thirty five thousand dollars ($135,000.00) of the Company's convertible promissory notes (the "Note" or "Notes"), which are convertible into the Company's Common Stock, $0.001 par value ("Common Stock"), par value $0.001. In connection with the aforementioned Notes, the Company also issued to the investors a warrant to purchase (the "Purchase Warrant") a certain number of shares of Common Stock, which are equal to 20% of the shares of Common Stock issuable upon conversion of the Note, based on a price of $2.00 per share. These warrants have a term of five (5) years, with an exercise price of $2.00 per share. Unless the Company chooses to terminate earlier, the offering and the sale of the Notes shall terminate on the sooner of the sale of the maximum offering amount or April 30, 2023. However, the Company has the option to extend this offering to June 30, 2023.

$100,000 of the Notes have a maturity date of the earlier of (i) one year from issuance; or (ii) upon the closing of a qualified offering. The other $35,000,000 of the Notes has a maturity date 60 days from issuance. Interest on the Note shall accrue on the unpaid principal balance of this Note at the rate of eight percent (8%) per annum, and will be calculated on an actual/365-day basis. In the event that the Company moves forward with a qualified offering, as referenced in the SPA, the Holder may convert the unpaid and outstanding principal plus any accrued and unpaid Interest into shares of the Company's Common Stock at a conversion price equal to a 20% discount to the offering price.

Further, in connection with the SPA, the Company also issued a Common Stock Purchase Warrant to certain investors, which are exercisable on or prior to the close of business on the five (5) year anniversary of the initial exercise date, to purchase up to a certain amount of shares of Common Stock, with 20% of the shares of Common Stock issuable upon conversion of the Convertible Promissory Note purchased by the Holder, pursuant to the SPA between the Holder and the Company. The Company issued Warrants to purchase an aggregate of 13,500 shares of Common Stock. The exercise price per share of the Common Stock under this Warrant is $2.00.

The following summary of the SPA, Convertible Promissory Note and Purchase Warrant are qualified in their entirety by reference to the full text of the SPA, Convertible Promissory Note and Common Stock Purchase Warrant, copies of which are attached as Exhibit 10.1, 10.2, and 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information set forth in Item 1.01 is incorporated by reference herein.

Item 3.02 Unregistered Sales of Equity Securities

The information set forth in Item 1.01 of this Current Report on Form 8-K concerning the offer and sale of the Notes and Warrants to the Purchasers pursuant to the SPA is incorporated herein by reference. The shares of Common Stock issued and sold under the SPA as described in Item 1.01 were offered and sold by the Company in reliance upon an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D thereunder.

Item 9.01. Financial Statements and Exhibits





(d) Exhibits.

The following exhibits are filed as part of this report:





Item 9.01 Exhibits



Exhibit No.    Description

Exhibit 10.1     Form of Securities Purchase Agreement
Exhibit 10.2     Form of Convertible Promissory Note
Exhibit 10.3     Form of Common Stock Purchase Warrant
104            Cover Page Interactive Data File (embedded within the Inline XBRL
               document)

© Edgar Online, source Glimpses