Perfect Moment Ltd. Enters into Convertible Secured Note Purchase Agreement with Investor

On December 6, 2024, Perfect Moment Ltd. (NASDAQ: PMNT) announced that the company has entered into a Convertible Secured Note Purchase Agreement with an accredited investor. This agreement, referred to as the “Note Purchase Agreement,” involves the issuance of a Convertible Secured Promissory Note (the “Note”) to the Investor in the principal amount of $2,000,000.

Interest on the Note will accrue on the outstanding principal balance at an annual rate of 15%, which is payable semi-annually in cash. The Note is set to mature on December 6, 2025. It is important to note that the Note is secured by a security interest in all tangible and intangible personal property of Perfect Moment Ltd.

The terms of the Note allow for conversion into shares of common stock at a conversion price of $1.00 per share. However, provisions exist to limit conversion by the Investor if such an action would result in the Investor and its affiliates owning more than 4.99% of the outstanding shares of common stock after conversion. Furthermore, the Note outlines certain events of default, including the failure to make timely payments of principal, interest, or other due amounts within five trading days.

The descriptions of the Note Purchase Agreement and Note within this announcement are not exhaustive and are subject to the details outlined in Exhibit 10.1 and Exhibit 10.2, respectively, which have been filed alongside this report.

Additionally, the company confirmed that this action constitutes the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement as per Item 2.03 of the SEC filing. Furthermore, the unregistered sales of equity securities, under Item 3.02, align with the details mentioned in Item 1.01 of the filing.

The filing also includes details regarding financial statements and exhibits, with specific references to the Convertible Secured Note Purchase Agreement and the Convertible Secured Note dated December 6, 2024, as well as a Cover Page Interactive Data File.

This announcement was made in accordance with the requirements of the Securities Exchange Act of 1934, with Jeff Clayborne, the Chief Financial Officer of Perfect Moment Ltd., signing the report on December 12, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Perfect Moment’s 8K filing here.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships.