MMTec, Inc. entered into a securities purchase agreement pursuant to which the company issued an unsecured senior convertible promissory note. The Note will mature in 24 months after the effective date of the note. The Note has an original principal amount of $40,000,000 and investor paid a purchase price of $32,000,000, reflecting an original issue discount of 20%.

Interest accrues on the outstanding balance of the Note at a simple rate of 8% per annum.