1847 Holdings LLC entered into a securities purchase agreement with an accredited investor for issuance of 20% OID subordinated unsecured promissory note in the principal amount of $625,000 for gross proceeds of $500,000 on May 8, 2024. The company also issued a warrant for the purchase of 92,937 common shares. The note is due and payable on August 8, 2024.

The company may voluntarily prepay the note in full at any time. Subject to shareholder approval, the note is convertible into common shares at the option of the holder at any time on or following the date that an event of default occurs at a conversion price equal to 90% of the lowest volume weighted average price of the company?s common shares on any trading day during the five trading days prior to the conversion date; provided that such conversion price shall not be less than $0.01. The warrant is exercisable at any time on or after the date that is the six months after the date of issuance and until the fifth anniversary thereof at an exercise price of $2.69 and may be exercised on a cashless basis if at the time of exercise there is no effective registration statement registering, or the prospectus contained therein is not available for, the issuance of common shares upon exercise thereof.