Molecular Data Inc. announced that it has entered into a securities purchase agreement with returning investor, YA II PN, Ltd., a fund managed by Yorkville Advisors Global LP for a private placement of convertible debentures for gross proceeds of $1,900,000 on July 14, 2021. The convertible debentures bear interest of 5% per year. The securities are issued at a discount of 5%. The investor shall be entitled to convert any portion of the outstanding and unpaid conversion amount into fully paid and nonassessable ordinary Shares. The debenture will mature on July 14, 2022 unless earlier converted or redeemed. Upon conversion, the company will issue American depositary shares to the investor. The initial conversion price shall be the lower of $1.30 per share, or 88% of a reference price benchmarked against trading price of the company's shares. Each American depositary share represents three class A ordinary shares of the company.