MicroCloud Hologram Inc. Releases Form 6-K: $28M Convertible Note Offering Details

Here are the key insights extracted from the provided section of the financial report:

1. Issuer Information:

• Company 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.

2. Form Type:

• The document is a Form 6-K, which is typically used by foreign private issuers to report certain events and financial information to the SEC.

3. Convertible Note Offering:

• On January 1, 2025, the company entered into Convertible Note Purchase Agreements (CNPA) with certain investors.
• The company issued Unsecured Convertible Promissory Notes with an aggregate original principal amount of $28,000,000 on January 6, 2025.

4. Offering Structure:

• The Notes are being offered in a registered direct offering and are registered under the Securities Act, with a prospectus supplement to an existing effective shelf registration.
• The Notes will have a term of 360 days and carry an aggregate original issue discount of $2,240,000.

5. Conversion Rights:

• Investors have the option to convert the outstanding balance of the Notes into Class A ordinary shares at a conversion price based on the lowest market closing price over the preceding 60 trading days, adjusted by multiplying by 70%.
• There is an Ownership Limitation that prevents conversions that would result in any investor owning more than 9.99% of the company's shares.

6. Interest Rate and Default Clauses:

• In the event of default, the outstanding balance will accrue interest at a rate of 10% per annum.
• Investors retain conversion rights until the outstanding balance is paid in full.

7. Use of Proceeds:

• The net proceeds from the offering of the Notes will be used for working capital and general corporate purposes.

8. Additional Information:

• The descriptions provided in the report are summaries of material terms and are subject to the full terms of the CNPA and Notes, which are attached as exhibits.
• The company plans to file a prospectus supplement relating to the offering on the SEC’s website.

9. Signature:

• The report is signed by Guohui Kang, Chief Executive Officer of MicroCloud Hologram Inc., on January 6, 2025.

This information is crucial for current and potential investors, as it outlines the company's fundraising efforts, the structure of the financial instruments offered, and the terms associated with them.