AEye, Inc. announced that it has entered into a Securities Purchase Agreement with new investor DowsLake Microsystems Corporation to issue 330,823 common shares at a price of $2.58 per share for the gross proceeds of $853,523.34 and an unsecured convertible promissory note in the principal amount of $146,476.66, for an aggregate total gross proceeds of $1,000,000 on May 10, 2024. The transaction is expected to close on May 27, 2024. The Note has a five year maturity from the Original Issue Date with an interest rate per annum equal to the sum of the daily simple Secured Overnight Financing Rate published by the Federal Reserve Bank of New York, as the administrator of the benchmark on its website as of the most recent historical Quarterly Interest Calculation Date plus one percent.

Upon maturity of the Note, the Company shall pay the Principal Balance and all accrued, unpaid and uncapitalized interest. Additionally, at any time while the Note is outstanding, the company has the right to prepay in whole or any portion of the Principal Balance or any accrued, unpaid, and uncapitalized interest. The securities issued in reliance upon the exemptions from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.