Kiromic BioPharma, Inc. announced that it has entered into a security purchase agreement for the issuance of senior secured convertible promissory note for gross proceeds of $2,000,000 on January 20, 2023. The transaction will include participation from an accredited investor. The note will bear interest rate of 25% per annum and matures on January 20, 2024, on which the principal balance and accrued but unpaid interest under the note shall be due and payable.

Pursuant to the agreement, the company may sell and issue up to a maximum aggregate principal amount of $6,000,000 for all notes issued pursuant to the agreement to the Investor in two subsequent closings to occur on or before February 15, 2023 and March 15, 2023. The note is convertible into shares of the company common stock, par value $0.001 per share at an initial conversion price of $0.35 per share, subject to a beneficial ownership limitation equivalent to 9.99% and a share cap of 4,080,435 shares, representing 19.9% of the total issued and outstanding shares of common stock as of January 20, 2023, in the event that the conversion price is lower than $0.2074 per share, representing the lower of the closing price immediately preceding the issuance date or the average closing price of the common stock for the five trading days immediately preceding the issuance date.