ETAO International Co., Ltd entered into a securities purchase agreement with Generating Alpha Ltd. on November 29, 2023. The Company agreed to issue a secured convertible note with a principal amount of $2,400,000 and warrants (the ?Warrants?) to purchase up to 4,444,444 ordinary shares, par value $0.0001 per share, of the Company. The Investor has paid $800,000 to the Company pursuant to the SPA, as part of the purchase price of the Secured Note as of December 18, 2023.

The notes carry a coupon rate of 12% and a maturity date of November 29, 2024. The Investor can convert in whole or in part the outstanding principal amount of the Secured Note, from time to time, at a conversion price that is equal to the lesser of (i) $0.22 or (ii) 80% of the average of the five (5) lowest trading prices of the Ordinary Shares during the previous twenty (20) trading-day period ending on the trading day prior to the Conversion Date.