PURE Bioscience, Inc. announced that it has entered into a Note Purchase Agreement with certain accredited investors to issue convertible promissory notes for the gross proceeds of $3,000,000 on March 22, 2024. The Notes Documents provided that the interest to the Lender shall accrue at the rate of 7.81%, compounded annually. The Maturity Date (as defined in the Notes) of the Notes is the third-year anniversary of the date of issuance, or such earlier date as the Notes provide.

All or any portion of the principal amount of the Note, plus accrued and unpaid interest, is convertible at any time, in whole or in part, at a Lender?s or the Company?s option, into shares of the Company?s common stock at a conversion price equal to the 30-day volume-weighted average price of the Company?s common stock as reported on the market or exchange on which the Company?s common stock is listed or quoted for trading (the ?VWAP?) on the date of conversion on the last trading day prior to the date of conversion, provided that such conversion price is at least $0.13 per share and less than or equal to $0.21 per share, subject to certain customary adjustments. Additionally, at any time following March 22, 2025, the holders of a majority of the outstanding principal balance under the Notes may elect specified in writing to convert all of the Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.13 per share, subject to certain customary adjustments. The transaction included participation from Tom Y. Lee has invested $500,000 and has approved by the shareholders of the company.

The Notes, and the shares of the Company?s common stock issuable upon conversion or in payment thereof, are being offered and sold pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended, afforded by Section 4(a)(2) thereof, for the sale of securities not involving a public offering.