H-CYTE, Inc. announced that it has entered into Securities Purchase Agreement and private placement of convertible corporate debt for the gross proceeds of $135,000 on April 12, 2023. The transaction included certain investors of the Company's convertible promissory notes, which are convertible into the Company's Common Stock, $0.001 par value, par value $0.001. In connection with the aforementioned Notes, the Company also issued to the investors a warrant to purchase a certain number of shares of Common Stock, which are equal to 20% of the shares of Common Stock issuable upon conversion of the Note, based on a price of $2.00 per share.

These warrants have a term of five (5) years, with an exercise price of $2.00 per share. Unless the Company chooses to terminate earlier, the offering and the sale of the Notes shall terminate on the sooner of the sale of the maximum offering amount or April 30, 2023. However, the Company has the option to extend this offering to June 30, 2023.

The notes of $100,000 Notes have a maturity date of the earlier of (i) one year from issuance; or upon the closing of a qualified offering. The other $35,000,000 of the Notes has a maturity date 60 days from issuance. Interest on the Note shall accrue on the unpaid principal balance of this Note at the rate of eight percent (8%) per annum, and will be calculated on an actual/365-day basis.

In the event that the Company moves forward with a qualified offering, as referenced in the SPA, the Holder may convert the unpaid and outstanding principal plus any accrued and unpaid Interest into shares of the Company's Common Stock at a conversion price equal to a 20% discount to the offering price. Further, in connection with the SPA, the Company also issued a Common Stock Purchase Warrant to certain investors, which are exercisable on or prior to the close of business on the five (5) year anniversary of the initial exercise date, to purchase up to a certain amount of shares of Common Stock, with 20% of the shares of Common Stock issuable upon conversion of the Convertible Promissory Note purchased by the Holder, pursuant to the SPA between the Holder and the Company. The Company issued Warrants to purchase an aggregate of 13,500 shares of Common Stock.

The exercise price per share of the Common Stock under this Warrant is $2.00.