Kiromic BioPharma, Inc. announced that it has completed private placement to issue 25% senior secured convertible promissory note at an issue price of $2,000,000 per note for gross proceeds of $2,000,000 on February 12, 2024. The transaction included participation from an accredited investor. The Note has a principal amount of $2,000,000, bears interest at a rate of 25% per annum and matures on February 12, 2025, on which the principal balance and accrued but unpaid interest under the Note shall be due and payable.

The rate will increase to 27% per annum or the highest rate then allowed under applicable law (whichever is lower) upon occurrence of an event of default, including the failure by the company to make payment of principal or interest due under the note on the maturity date, and any commencement by the company of a case under any applicable bankruptcy or insolvency laws. The Note is convertible into shares at an initial conversion price of $2.50 per share, subject to a beneficial ownership limitation equivalent to 9.99%. The issuance of the Note was made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.