SCWorx Corp. announced it has entered into a Securities Purchase Agreement to issue a new series of senior secured convertible notes with an aggregate original principal amount of $1,155,000, series A warrant, series B warrant and series C warrant for aggregate gross proceeds $1,155,000 on July 12, 2024. The transaction includes participation from Iroquois Capital Investment Group, LLC for $269,500, Iroquois Master Fund Ltd for $308,000 and Armas Capital Management LLC for $577,500.

The Convertible Notes will accrue compounding interest at the rate of 10% per annum and will mature on the earlier of January 15, 2025. The Notes Offering was exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and in reliance on similar exemptions under applicable state laws. Each Convertible Note will be convertible, at the option of the applicable noteholder, into shares of our common stock at an initial fixed conversion price of $1.43 per share.

The Warrants are exercisable immediately, one-third of which (the Series A Warrants) are exercisable at a price of $1.43 per share and two-thirds of which (the Series B Warrants and the Series C Warrants) are exercisable at a price of $1.573 per share, all expiring five years from the date of issuance.