Presto Automation Inc entered into Securities Purchase Agreements to issue $1,500,000 principal amount of convertible subordinated notes for a gross proceeds $1,500,000 on May 16, 2024. The transaction included participation from Remus Capital Series B II, L.P. Interest on the Notes accrues monthly by increasing principal at a rate of 7.5% per annum. The interest rate shall increase to 12% in the case of an event of default.

The notes will mature on March 30, 2026. The Notes are convertible into 10,714,286 shares of Common Stock at the option of each holder at an initial conversion price of $0.14 per share. The Notes shall convert mandatorily into Common Stock at the then prevailing conversion price immediately prior to a Restructuring Transaction, and a Change of Control Transaction with a financial investor.