SECsense Logo

MicroCloud Hologram Inc. February 2025 Financial Report: $40M Convertible Notes Issued

$HOLO
Form 6-K
Filed on: 2025-02-18
Source
MicroCloud Hologram Inc. February 2025 Financial Report: $40M Convertible Notes Issued

Here are the key insights and information extracted from the provided financial report (Form 6-K) of MicroCloud Hologram Inc.:

  1. Date of Report: The report is for the month of February 2025 and was filed on February 18, 2025.
  2. Company Overview:
  • Name: MicroCloud Hologram Inc.
  • Address: Room 302, Building A, Zhong Ke Na Neng Building, Yue Xing Sixth Road, Nanshan District, Shenzhen, People's Republic of China 518000.
  1. Convertible Note Purchase Agreement (CNPA):
  • Date of Agreement: February 17, 2025.
  • Total Amount Issued: $40,000,000 in Unsecured Convertible Promissory Notes (the "Notes").
  • The Notes were issued on February 18, 2025.
  1. Offering Details:
  • The Notes are part of a registered direct offering and are registered under the Securities Act.
  • Each Note has a term of 360 days and carries an original issue discount of $3,200,000.
  • The company will cover costs and expenses associated with the sale of the Notes.
  1. Conversion Rights:
  • Investors can convert the Notes into Class A ordinary shares based on a specific formula related to the market price of the shares.
  • The conversion price is set at 70% of the lowest market closing price over the past 60 trading days.
  • There is an Ownership Limitation where the company can decline conversion if it would result in an investor owning more than 9.99% of the shares outstanding.
  1. Interest Rate:
  • In case of an Event of Default, the interest on the outstanding balance will accrue at a rate of 10% per annum. Investors retain conversion rights until the balance is paid.
  1. Use of Proceeds:
  • The net proceeds from the offering will be used for working capital and general corporate purposes.
  1. Regulatory Filings:
  • The report includes references to additional documents such as the CNPA and the Notes, which are attached as exhibits.
  • The information will be incorporated into the company's existing registration statement on Form F-3.
  1. Contact Information:
  • The report is signed by Guohui Kang, the Chief Executive Officer of MicroCloud Hologram Inc.

Overall, this report provides critical information regarding a significant financing activity undertaken by MicroCloud Hologram Inc., involving the issuance of convertible notes which may impact the company's capital structure and liquidity.