Item 1.01 Entry into a Material Definitive Agreement.

On May 27, 2020, LiqTech International, Inc. (the "Company") closed a Securities Purchase Agreement (the "Purchase Agreement") with certain accredited investors (the "Investors") in a private placement (the "Private Placement") pursuant to which the Company issued and sold an aggregate of 1,085,000 shares of common stock, par value $0.001 per share (the "Common Stock"), at a purchase price of $5.00 per share and a prefunded warrant to purchase an aggregate of 515,000 shares of Common Stock, at a purchase price of $5.00 per share (the "Warrant") for gross proceeds of $8,000,000. The Company intends to use the net proceeds from the Private Placement for general corporate purposes, including working capital. The Purchase Agreement contains customary representations and warranties of the Company and certain indemnification obligations of the Company and ongoing covenants of the Company.

Subject to certain beneficial ownership limitations, the Warrant is immediately exercisable and may be exercised for no additional consideration. The Warrant does not expire. A holder of the Warrant will not have the right to exercise any portion of the Warrant if the holder together with Affiliates and Attribution Parties (as such terms are defined in the Warrant) would beneficially own in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrant. However, upon notice from the holder to the Company, the holder may decrease or increase the beneficial ownership limitation, which may not exceed 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrant, provided that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to the Company.

Pursuant to the terms of the Purchase Agreement, and as a condition to closing the Private Placement, the Company and each Investor simultaneously entered into a registration rights agreement (the "Registration Rights Agreement") requiring the Company to file a registration statement with the Securities and Exchange Commission within thirty (30) days of the closing of the Private Placement to register for resale the shares of Common Stock and the shares of Common Stock underlying the Warrant sold in the Private Placement. The Registration Rights Agreement contains customary terms and conditions, certain liquidated damages provisions for failing to comply with the timing obligations for the filing and effectiveness of the registration statement, and certain customary indemnification obligations.

The foregoing is only a summary of the Warrant, the Purchase Agreement and the Registration Rights Agreement and does not purport to be a complete description thereof. Such descriptions are qualified in their entirety by reference to the forms of Warrant, Purchase Agreement and Registration Rights Agreement, copies of which are filed as Exhibits 4.1, 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.





(d) Exhibits.



Exhibit No.   Exhibit
    4.1         Form of Pre-Funded Warrant
  10.1*#        Form of Securities Purchase Agreement, by and among the Company and
              the purchasers named therein
   10.2         Form of Registration Rights Agreement, by and among the Company and
              the investors named therein

* The schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish supplementally a copy of all omitted schedules to the Securities and Exchange Commission upon its request.

# Exhibits A and B to this document have been separately filed as Exhibits 4.1 and 10.2, respectively, to this Current Report on Form 8-K.





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