Tantech Holdings Ltd announced that it has entered into a securities purchase agreement with new investor Streeterville Capital, LLC to issue 1 unsecured convertible promissory note in the original principal amount of $2,160,000 at an issue price of $2,000,000 for the gross proceeds of $2,000,000 on June 29, 2023. The notes are convertible into ordinary shares, par value $0.24 per share of the company. The note bears interest at a rate of 7% per annum compounding daily.

All outstanding principal and accrued interest on the note will become due and payable twelve months after the purchase price of the note is delivered by Purchaser to the company. The note includes an original issue discount of $140,000 along with $20,000 for investor's fees, costs and other transaction expenses incurred in connection with the purchase and sale of the note. The company may prepay all or a portion of the note at any time by paying 105% of the outstanding balance elected for pre-payment.

The fair value of the note was $2,003,000 as of June 30, 2023