UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
The disclosures set forth in Item 2.03 are incorporated into this Item 1.01 by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On December 13, 2021 Alset EHome International Inc. (the “Company”), entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Chan Heng Fai (the “Purchaser”) for the issuance and sale of a convertible promissory note (the “Note”) in favor of Purchaser, in the principal sum of $6,250,000.
The Note bears interest at a rate equal to three percent (3%) per annum, computed using a 360 day year multiplied by the actual number of days in each time period. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable, shall be due and payable on the earlier of (i) December 13, 2024 or (ii) when such amounts are declared due and payable by the Purchaser or made automatically due and payable, in each case upon or after the occurrence of an Event of Default (as defined in the Note).
Upon one (1) business day written notice the Company, the Purchaser will have the option to at its sole discretion to either (i) convert, in whole or in part the outstanding balance and accrued interest payable thereon under the Note into either shares of common stock at the conversion price $0.625 or (ii) receive cash payment for the accrued and unpaid balance.
The Purchaser is the Chief Executive Officer and Chairman of the Board of Directors of the Company, and is the largest shareholder of the Company’s common stock. The sale and issuance of the Note by the Company to Purchaser is considered a related party transaction. The sale and issuance of this Note by the Company to Purchaser is subject to approval by Nasdaq.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
ALSET EHOME INTERNATIONAL INC. | ||
Dated: December 17, 2021 | By: | /s/ Rongguo Wei |
Name: Rongguo Wei | ||
Title: Co-Chief Financial Officer |