Digital Health Acquisition Corp. announced that it has entered into a securities purchase agreement with an institutional investor for issuance of promissory note in the aggregate principal amount of $300,000, warrants with an exercise period of five years to purchase up to 26,086 shares common stock at an exercise price of $11.50 per share and issued a SCS promissory note to SCS Capital Partners LLC in the aggregate principal amount of $200,000 on May 5, 2023. The note bears interest at a rate of 10% per annum and is due and payable on May 5, 2024.

VSee Lab, Inc., and and iDoc Virtual Telehealth Solutions, Inc. guaranteed the company’s obligations under the SPA, the Promissory Note and the other transaction documents. In connection with the securities purchase agreement, the company issued to the holder warrants with an exercise period of five years to purchase up to 26,086 common stock at an exercise price of $11.50 per share and 7,000 shares common stock as commitment shares. The SCS note bears interest at a rate of 10% per annum and is due and payable on May 5, 2024.

If the company’s PIPE financing closes in connection with the closing of its business combination, 100% of all unpaid principal under the promissory note and any accrued but unpaid interest are due and payable at the closing of the PIPE financing. The company raised funding pursuant to exemption provided under regulation D.