Clearday, Inc. announced that it has entered into agreement for a private placement of unsecured promissory note for gross proceeds of $153,750 on May 27, 2022. The transaction will include participation from Sixth Street Lending, LLC. The note will carry a interest rate of 12% and will mature on May 27, 2023.

Upon any event of default, the obligations under the Note will accrue interest at an annual rate of 22% and, if such event of default is continuing at any time that is 180 days after the date of the note, provide the noteholder the right and option to convert the obligations under the note to shares of its common stock. The price for any such conversion is equal to 75% of the average of the five lowest per share daily volume-weighted average price of its common stock over the ten consecutive trading days that are not subject to specified market disruptions immediately preceding the date of the conversion. The conversion right of the Noteholder is subject to a customary limitation on beneficial ownership of 4.99% of its common stock.