Smart Wires Technology Ltd. announced that it has entered into a security purchase agreement for the issuance of 20,000 of preferred shares at a price of $1,000 per share for gross proceeds of $20,000,000 on November 14, 2022. The preferred shares each have no par value. The preferred shares have the right to optional conversion, at the election of the holder thereof, into the equity securities in certain future equity financings of the company at a price equal to 85% of the lowest cash price paid for such equity securities.

In addition, there is priority of payment over ordinary shares in any distribution or dividend by the company, and a liquidation preference of three times the original issue price of $1,000 per share, subject to increases of up to five times the original issue price upon certain triggering events. The transaction has been approved by the board of directors of the company.