Phoenix Motor Inc. announced that it has entered into a securities purchase agreement for issuance of secured senior convertible promissory note for gross proceeds of $10.8 million on November 10, 2023. The notes have an original issue discount of 10% and have a principal amount of $12 million. The note will accrue interest at the prime rate plus 4.75% per annum if interest is paid in cash, or the prime rate plus 7.75% per annum if interest is paid in shares of common stock, payable on the last trading day of each quarter.

The note will mature 18 months after the date of issuance. The company may, from time to time, prepay the principal amount owing under the note, subject to a 30% prepayment premium, so long as the company provides at least 30 business days? prior written notice to the holder of such prepayment.

The note will be convertible into shares of the company?s common stock at a conversion price, which is the greater of $0.60, subject to adjustment as provided herein or the lesser of 87.5% of the lowest daily VWAP in the seven (7) trading days prior to the conversion date, subject to adjustment as provided herein and $0.80, subject to adjustment as provided herein.