Filed Pursuant to Rule 424(b)(3)
Registration No. 333-276334
PROSPECTUS SUPPLEMENT NO.
15
(to Prospectus dated June 25, 2024)
Up to 1,997,116 Shares of Common Stock
1,700,884 Shares of Common Stock Underlying
the Warrants
This
prospectus supplement is being filed to update and supplement the information contained in the prospectus dated June 25, 2024 (the “Prospectus”),
which forms a part of our Registration Statement on Form S-11 (File No. 333-276334) with the information contained in our Current
Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on December 19, 2024 (the “Current Report”). Accordingly,
we have attached the Current Report to this prospectus supplement.
Our common stock is currently
listed on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “AIRE.” On December 18, 2024, the closing
price of our common stock was $1.12.
This prospectus supplement
updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in
combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction
with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should
rely on the information in this prospectus supplement.
We are a “controlled company” under
the Nasdaq listing rules because Giri Devanur, our chief executive officer and chairman, owns approximately 60.26% of our outstanding
common stock. As a controlled company, we are not required to comply with certain of Nasdaq’s corporate governance requirements;
however, we will not take advantage of any of these exceptions.
INVESTING
IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISKS THAT ARE DESCRIBED IN THE “RISK FACTORS” SECTION BEGINNING ON PAGE 5 OF
THE PROSPECTUS.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if the Prospectus or this prospectus supplement is accurate or complete. Any representation to the contrary is a criminal offense.
The date
of this prospectus supplement is December 19, 2024.
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the
Securities Exchange
Act of 1934
Date of Report (date
of earliest event reported): December 19, 2024
reAlpha Tech Corp.
(Exact name of registrant
as specified in its charter)
| Delaware |
|
001-41839 |
|
86-3425507 |
|
(State or other jurisdiction of
incorporation or organization) |
|
(Commission File Number) |
|
(I.R.S. Employer
Identification Number) |
6515 Longshore Loop,
Suite 100, Dublin, OH 43017
(Address of principal
executive offices and zip code)
(707) 732-5742
(Registrant’s
telephone number, including area code)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b)
of the Act:
| Title of each class |
|
Trading symbol(s) |
|
Name of each exchange on which registered |
| Common Stock, par value $0.001 per share |
|
AIRE |
|
The Nasdaq Stock Market LLC |
Indicate by check mark
whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive Agreement.
On
December 19, 2024, reAlpha Tech Corp. (the “Company”) entered into an At the Market Sales Agreement (the “Sales Agreement”)
with A.G.P./Alliance Global Partners (“A.G.P.”). In accordance with the terms of the Sales Agreement, the Company may offer
and sell from time to time through A.G.P., acting as sales agent, the Company’s common stock having an aggregate offering price
of up to $4,750,000 (the “Placement Shares”). The Placement Shares will be issued pursuant to the Company’s shelf
registration statement on Form S-3 (File No. 333-283284) filed with the Securities and Exchange Commission (the “SEC”)
on November 15, 2024, and declared effective on November 26, 2024. The Company filed a prospectus supplement dated December 19, 2024,
with the SEC in connection with the offer and sale of the Placement Shares.
Because
there is no minimum offering amount required pursuant to the Sales Agreement, the total number of Placement Shares to be sold under the
Sales Agreement, if any, and proceeds to the Company, if any, are not determinable at this time. The Company expects that any proceeds
received from the offering of the Placement Shares pursuant to the Sales Agreement will be used for working capital and general corporate
purposes, which may include repayment of debt, future acquisitions, capital expenditures and purchase of cryptocurrencies in accordance
with the Company’s cryptocurrency investment policy.
Under
the terms and subject to the conditions of the Sales Agreement, the Company will set the parameters for the sale of shares, including
the number or dollar amount of Placement Shares to be issued, the time period during which sales are requested to be made, any limitation
on the number or dollar amount of Placement Shares that may be sold in any one Trading Day (as defined in the Sales Agreement) and any
minimum price below which sales may not be made, subject to a floor price of $5.00 per Placement Share. Sales of Placement Shares, if
any, will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated
under the Securities Act of 1933, as amended.
The Company
will pay A.G.P. a cash commission equal to 3.0% of the aggregate gross proceeds from the sale of Placement Shares sold pursuant to the
Sales Agreement. The Company will also reimburse A.G.P. for certain specified expenses in connection with this offering, including reasonable
out-of-pocket costs and expenses, including legal fees and related expenses, in an amount not to exceed (a) $40,000 in connection with
the execution and implementation of the Sales Agreement and (b) up to $5,000 per calendar quarter thereafter pursuant to the terms of
the Sales Agreement, not to exceed $20,000 per fiscal year, in connection with any periodic due diligence review conducted by A.G.P. or
its representatives in connection with the offering. In addition, the Company has agreed to indemnify A.G.P. against certain liabilities
set forth in the Sales Agreement.
The offering
of the Placement Shares pursuant to the Sales Agreement will terminate upon the earliest of (i) the 36-month anniversary of the date of
the Sales Agreement, (ii) the sale of all of the Placement Shares or (iii) termination of the Sales Agreement as provided therein. The
Company and A.G.P. may each terminate the Sales Agreement at any time upon 5 days’ prior notice.
The Sales
Agreement also contains representations, warranties and covenants that are customary for transactions of this type. The representations,
warranties and covenants contained in the Sales Agreement are made only for purposes of such agreement and as of the specific date, is
solely for the benefit of the parties to such agreement and may be subject to limitations agreed upon by the contracting parties. The
foregoing description of the Sales Agreement is qualified in its entirety by reference to the full text of the Sales Agreement, a copy
of which is attached hereto as Exhibit 1.1, and is incorporated herein in its entirety by reference. A copy of the legal opinion of Mitchell
Silberberg & Knupp LLP relating to the Placement Shares is filed as Exhibit 5.1 hereto.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
| Date: December 19, 2024 |
REALPHA TECH CORP. |
| |
|
|
| |
By: |
/s/ Giri Devanur |
| |
|
Giri Devanur |
| |
|
Chief Executive Officer |
Exhibit 1.1
REALPHA TECH CORP.
Common Stock
(par value $0.001 per share)
At the Market Sales Agreement
December 19, 2024
A.G.P./Alliance Global Partners
590 Madison Avenue, 28th Floor
New York, NY 10022
Ladies and Gentlemen:
reAlpha Tech Corp., a Delaware
corporation (the “Company”), confirms its agreement (this “Agreement”) with A.G.P./Alliance Global
Partners (“AGP”) as follows:
1. Issuance and Sale of
Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions
set forth herein, it may issue and sell through AGP, shares (the “Placement Shares”) of the Company’s
common stock, par value $0.001 per share (the “Common Stock”); provided, however, that in no event
shall the Company issue or sell through AGP such number or dollar amount of Placement Shares that would (a) exceed the number or
dollar amount of shares of Common Stock registered on the Prospectus Supplement (as defined below) pursuant to which the offering
hereunder is being made; (b), when issued, exceed the total amount of authorized but unissued shares of Common Stock (less the
number of shares of Common Stock issuable upon exercise, conversion or exchange of any outstanding securities of the Company or
otherwise reserved from the Company’s authorized capital stock); or (c) exceed the number or dollar amount of shares of Common
Stock that would cause the Company or the offering of the Placement Shares not to satisfy the eligibility and transaction
requirements for use of Form S-3 (including, if applicable, General Instruction I.B.6 thereof) (the least of (a), (b) and (c), the
“Maximum Amount”). Notwithstanding anything to the contrary contained herein, the parties hereto agree that
compliance with the limitations set forth in this Section 1 on the number or aggregate sales price of Placement Shares issued
and sold under this Agreement shall be the sole responsibility of the Company and that AGP shall have no obligation in connection
with such compliance. The issuance and sale of Placement Shares through AGP will be effected pursuant to the Registration Statement
(as defined below), although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement
to issue any Placement Shares.
The Company has filed, in
accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder (collectively, the
“Securities Act”), with the Securities and Exchange Commission (the “Commission”), a registration
statement on Form S-3 (File No. 333-283284), including a base prospectus, relating to certain securities including the Placement Shares
to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in
accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively,
the “Exchange Act”). The Company has prepared a prospectus supplement to the base prospectus included as part of such
registration statement specifically relating to the Placement Shares (the “Prospectus Supplement”). The Company will
furnish to AGP, for use by AGP, copies of the base prospectus included as part of such registration statement, as supplemented by the
Prospectus Supplement, relating to the Placement Shares. Except where the context otherwise requires, such registration statement, and
any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference therein, and including
any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the
Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act, is herein called the
“Registration Statement.” The base prospectus, including all documents incorporated or deemed incorporated therein
by reference to the extent such information has not been superseded or modified in accordance with Rule 412 under the Securities Act (as
qualified by Rule 430B(g) of the Securities Act), included in the Registration Statement, as it may be supplemented by the Prospectus
Supplement, in the form in which such base prospectus and/or Prospectus Supplement have most recently been filed by the Company with the
Commission pursuant to Rule 424(b) under the Securities Act is herein called the “Prospectus.” Any reference herein
to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents
incorporated or deemed incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing
after the execution hereof of any document with the Commission incorporated or deemed incorporated by reference therein (the “Incorporated
Documents”).
For purposes of this Agreement,
all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the
most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable,
the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”). The Company’s
obligations under this Agreement to furnish, provide, deliver or make available (and all other references of like import) copies of any
report or statement shall be deemed satisfied if the same is filed with the Commission through EDGAR.
2. Placements. Each
time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will notify
AGP by email notice (or other method mutually agreed to in writing by the parties hereto) of the number or dollar amount of
Placement Shares to be issued, the time period during which sales are requested to be made, any limitation on the number or dollar
amount of Placement Shares that may be sold in any one Trading Day (as defined below) and any Floor Price (as defined below) which
sales may not be made (a “Placement Notice”), the form of which is attached hereto as Schedule 1. The
Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 3 (with a copy to each of
the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from AGP set
forth on Schedule 3, as such Schedule 3 may be amended from time to time. The Placement Notice shall be effective
immediately upon receipt by AGP unless and until (i) in accordance with the notice requirements set forth in Section 4, AGP declines
to accept the terms contained therein for any reason, in its sole discretion; (ii) the entire amount of the Placement Shares
thereunder has been sold; (iii) in accordance with the notice requirements set forth in Section 4, the Company suspends or
terminates the Placement Notice, which suspension and termination rights may be exercised by the Company in its sole discretion;
(iv) the Company issues a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice; or
(v) this Agreement has been terminated under the provisions of Section 13. The amount of any discount, commission or other
compensation to be paid by the Company to AGP in connection with the sale of the Placement Shares shall be calculated in accordance
with the terms set forth in Schedule 2. It is expressly acknowledged and agreed that neither the Company nor AGP will have
any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement
Notice to AGP and AGP does not decline such Placement Notice pursuant to the terms set forth above, and then only upon the terms
specified therein and herein. In the event of a conflict between the terms of Sections 2 or 3 of this Agreement and the terms
of a Placement Notice, the terms of the Placement Notice will control.
3. Sale of Placement
Shares by AGP. Subject to the terms and conditions of this Agreement, for the period specified in a Placement Notice, AGP will
use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal
laws, rules and regulations and the rules of The Nasdaq Capital Market (the “Exchange”), to sell the Placement
Shares up to the amount specified in, and otherwise in accordance with, the terms of such Placement Notice. AGP will provide written
confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following the Trading Day on
which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such Trading Day, the
volume weighted average price of the Placement Shares sold, the compensation payable by the Company to AGP pursuant to Section
2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the
deductions made by AGP (as set forth in Section 5(b)) from the gross proceeds that it receives from such sales. Subject to
the terms of a Placement Notice, AGP may sell Placement Shares by any method permitted by law deemed to be an “at the market
offering” as defined in Rule 415 of the Securities Act, including, without limitation, sales made directly on the Exchange, on
any other existing trading market for the Common Stock or to or through a market maker. “Trading Day” means any
day on which shares of Common Stock are purchased and sold on the Exchange.
4. Suspension of
Sales. The Company or AGP may, upon notice to the other party in writing (including by email correspondence to each of the
individuals of the other party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any of
the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 3),
suspend any sale of Placement Shares for a period of time (a “Suspension”); provided, however, that
such Suspension shall not affect or impair any party’s obligations with respect to any Placement Shares sold hereunder prior
to the receipt of such notice. During the Suspension period, the Company shall not issue any Placement Notices and AGP shall not
sell any Placement Shares hereunder. The party that issued a Suspension notice shall notify the other party in writing of the
Trading Day on which the Suspension shall expire not later than twenty-four (24) hours prior to such Trading Day. While a Suspension
is in effect, any obligation under Sections 7(l), 7(m), and 7(n) with respect to the delivery of certificates,
opinions, or comfort letters to AGP, shall be waived. Each of the parties hereto agrees that no such notice under this Section
4 shall be effective against any other party unless it is made to one of the individuals named on Schedule 3 hereto, as
such Schedule may be amended from time to time, and acknowledged or confirmed, as applicable, in accordance with the first sentence
of this Section 4.
5. Sale and Delivery to
AGP; Settlement.
a. Sale of Placement
Shares. On the basis of the representations and warranties herein contained, and subject to the terms and conditions herein set
forth, unless AGP declines to accept the terms of a Placement Notice, and unless the sale of the Placement Shares described therein
has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, AGP, for the period specified
in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and
applicable state and federal laws, rules and regulations and the rules of the Exchange, to sell such Placement Shares up to the
amount specified in, and otherwise in accordance with the terms of, such Placement Notice. The Company acknowledges and agrees that
(i) there can be no assurance that AGP will be successful in selling Placement Shares; (ii) AGP will incur no liability or
obligation to the Company or any other person or entity if it does not sell Placement Shares for any reason other than a failure by
AGP to use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and
federal laws, rules and regulations and the rules of the Exchange to sell such Placement Shares as required under this Agreement;
and (iii) AGP shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement, except as
otherwise agreed in writing by AGP and the Company.
b. Settlement of
Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will
occur on the first (1st) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on
which such sales are made (each, a “Settlement Date”). AGP shall notify the Company of each sale of Placement
Shares no later than the opening of the Trading Day immediately following the Trading Day that AGP sold Placement Shares. The amount
of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net
Proceeds”) will be equal to the aggregate sales price received by AGP for such Placement Shares, after deduction for (i)
AGP’s commission, discount or other compensation for such sales payable by the Company pursuant to Section 2 hereof;
(ii) any other amounts due and payable by the Company to AGP hereunder pursuant to Section 9 hereof; and (iii) any
transaction fees, trading expenses or execution fees imposed by any clearing organization or any governmental or self-regulatory
organization or any other fees incurred by AGP in respect of such sales that are paid or payable by AGP.
c. Delivery of
Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Placement Shares being sold by crediting AGP’s or its designee’s account (provided, AGP shall have given
the Company written notice of such designee and such designee’s account information at least one Trading Day prior to the
Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System (“DWAC”)
or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable,
transferable, registered shares in good deliverable form. On each Settlement Date, AGP will deliver the related Net Proceeds in same
day funds to an account designated by the Company on, or prior to, the Settlement Date. AGP will be responsible for providing
instructions for delivery by means other than DWAC with regard to the Placement Shares being sold. The Company agrees that if the
Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date through
no fault of AGP, then in addition to and in no way limiting the rights and obligations set forth in Section 11(a) hereto, it
will (i) hold AGP harmless against any loss, claim, damage, or reasonable, documented expense (including reasonable and documented
legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its transfer agent (if
applicable); and (ii) pay to AGP (without duplication) any commission, discount, or other compensation to which it would otherwise
have been entitled absent such default.
d. Limitations on
Offering Size and Price per Share. Under no circumstances shall the Company cause or request the offer or sale of any Placement
Shares if, after giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of such Placement Shares
would exceed the least of (A) together with all sales of Placement Shares under this Agreement, the Maximum Amount, (B) the amount
remaining available for offer and sale under the Registration Statement and (C) together with all sales of Placement Shares under
this Agreement, the amount authorized from time to time to be issued and sold under this Agreement by the Company’s board of
directors, a duly authorized committee thereof or a duly authorized executive officer, and notified to AGP in writing. Under no
circumstances shall the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price
lower than the Floor Price. “Floor Price” means the minimum price of $5.00 per Placement Share (subject to adjustment
for any stock split, stock combination, or other similar transaction).
e. Short Sales.
During the term of this Agreement, neither AGP nor any of its affiliates or subsidiaries shall engage in (i) any short sale of any
security of the Company or (ii) any sale of any security of the Company that AGP does not own or any sale that is consummated by the
delivery of a security of the Company borrowed by, or for the account of, AGP. During the term of this Agreement and notwithstanding
anything to the contrary herein, AGP agrees that in no event will AGP or its affiliates engage in any market making, bidding,
stabilization or other trading activity with regard to the Common Stock or related derivative securities if such activity would be
prohibited under Regulation M or other anti-manipulation rules under the Exchange Act.
6. Representations and
Warranties of the Company. The Company represents and warrants to, and agrees with AGP that as of the date of this Agreement and
as of each Applicable Time (as defined below), unless such representation, warranty or agreement specifies a different date or
time:
a. Registration
Statement and Prospectus. The transactions contemplated by this Agreement meet the requirements for and comply with the
conditions for the use of Form S-3 under the Securities Act. The Registration Statement has been filed with the Commission and has
been declared effective under the Securities Act. The Prospectus Supplement will name AGP as the agent in the section entitled
“Plan of Distribution.” The Company has not received, and has no notice of, any order of the Commission
preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose. The
Registration Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the
Securities Act and comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are
required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement
have been so described or filed, as applicable. Copies of the Registration Statement, the Prospectus, and any such amendments or
supplements and all Incorporated Documents that were filed with the Commission on or prior to the date of this Agreement have been
delivered, or are available through EDGAR, to AGP and its counsel. The Company has not distributed and, prior to the later to occur
of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material in
connection with the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer
Free Writing Prospectus (as defined below) to which AGP has consented in writing, such consent not to be unreasonably withheld,
conditioned or delayed, or that is required by applicable law or the listing maintenance requirements of the Exchange. The Common
Stock is currently listed on the Exchange under the trading symbol “AIRE.” The Company has not, in the twelve
(12) months preceding the date hereof, received notice from the Exchange to the effect that the Company is not in compliance with
the listing or maintenance requirements of the Exchange. To the Company’s Knowledge, it is in compliance with all such listing
and maintenance requirements of the Exchange.
b. No Misstatement or
Omission. At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will conform in all material
respects with the requirements of the Securities Act. The Registration Statement, when it became or becomes effective, did not, and
will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. The Prospectus and any amendment and supplement thereto, on the date thereof and at
each Applicable Time (defined below), did not or will not include an untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The
Incorporated Documents did not, and any further Incorporated Documents will not, when filed with the Commission, contain an untrue
statement of a material fact or omit to state a material fact required to be stated in such document or necessary to make the
statements in such document, in light of the circumstances under which they were made, not misleading. The foregoing shall not apply
to, and the Company neither makes nor shall make any representation or warranty in respect of, statements in, or omissions from, any
such document made in reliance upon, and in conformity with, information furnished in writing to the Company by AGP specifically for
use in the preparation thereof.
c. Conformity with
Securities Act and Exchange Act. The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment
or supplement thereto, and the Incorporated Documents, when such documents were or are filed with the Commission under the
Securities Act or the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will
conform in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable.
d. Financial
Information. (i) The consolidated financial statements of the Company included or incorporated by reference in the Registration
Statement and the Prospectus, together with the related notes and schedules, present fairly, in all material respects, the
consolidated financial position of the Company and the Subsidiaries (as defined below) as of the dates indicated and the
consolidated results of operations, cash flows and changes in stockholders’ equity of the Company and the Subsidiaries for the
periods specified (subject, in the case of unaudited financial statements, to normal year-end audit adjustments which will not be
material, either individually or in the aggregate) and have been prepared in compliance with the published requirements of the
Securities Act and Exchange Act, as applicable, and in conformity with generally accepted accounting principles in the United States
(“GAAP”) applied on a consistent basis (except (a) as may be noted therein; (b) in the case of unaudited
financial statements, to the extent they may exclude footnotes or may be condensed or summary statements; and (c) for such
adjustments which will not be material, either individually or in the aggregate) during the periods involved; (ii) the other
financial and statistical data with respect to the Company and the Subsidiaries contained or incorporated by reference in the
Registration Statement and the Prospectus, are accurately and fairly presented and prepared on a basis consistent with the financial
statements and books and records of the Company; (iii) there are no financial statements (historical or pro forma) that are required
to be included or incorporated by reference in the Registration Statement, or the Prospectus that are not included or incorporated
by reference as required; (iv) the Company and the Subsidiaries do not have any material liabilities or obligations, direct or
contingent (including any off-balance sheet obligations), not described in the Registration Statement (including the exhibits
thereto, Incorporated Documents and SEC Documents), and the Prospectus which are required to be described in the Registration
Statement or Prospectus (including the exhibits thereto, Incorporated Documents and SEC Documents); and (v) all disclosures
contained or incorporated by reference in the Registration Statement and the Prospectus, if any, regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects with
Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable.
e. Conformity with
EDGAR Filing. The Prospectus delivered to AGP for use in connection with the sale of the Placement Shares pursuant to this
Agreement will be identical to the versions of the Prospectus created to be transmitted to the Commission for filing via EDGAR,
except to the extent permitted by Regulation S-T.
f. Organization.
The Company and any subsidiary of the Company that is a significant subsidiary (as such term is defined in Rule 1-02 of Regulation
S-X promulgated by the Commission) (each, a “Subsidiary,” collectively, the “Subsidiaries”),
are duly organized, validly existing as a corporation and in good standing under the laws of their respective jurisdictions of
organization. The Company and the Subsidiaries are duly licensed or qualified as a foreign corporation for transaction of business
and in good standing under the laws of each other jurisdiction in which their respective ownership or lease of property or the
conduct of their respective businesses requires such license or qualification, and have all corporate power and authority necessary
to own or hold their respective properties and to conduct their respective businesses as described in the Registration Statement and
the Prospectus, except where the failure to be so qualified or in good standing or have such power or authority would not,
individually or in the aggregate, have a material adverse effect on the assets, business, operations, earnings, properties,
condition (financial or otherwise), prospects, stockholders’ equity or results of operations of the Company and the
Subsidiaries, taken as a whole, from that set forth in the Registration Statement, the Prospectus, any Prospectus Supplement, the
Incorporated Documents or the SEC Documents, or a material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations contemplated hereby (a “Material Adverse Effect”).
g. Subsidiaries.
As of the date hereof, the only Subsidiaries of the Company are set forth in the SEC Documents. Except as set forth in the
Registration Statement or the Prospectus, the Company owns directly or indirectly, all of the equity interests of the Subsidiaries
free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity
interests of the Subsidiaries owned by the Company are validly issued and are fully paid, nonassessable and free of any preemptive
rights, rights of first refusal or similar rights.
h. No Violation or
Default. Neither the Company nor any Subsidiary is: (i) in violation of its charter or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default,
in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound or to which any of the property or assets of the Company or any Subsidiary is subject, except as set forth in
the Registration Statement or the Prospectus; or (iii) in violation of any law or statute or any judgment, order, rule or regulation
of any court or arbitrator or governmental or regulatory authority having jurisdiction over the Company or any Subsidiary, except,
in the case of each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect. To the Company’s Knowledge, no other party under any material contract or other
agreement to which it or any Subsidiary is a party is in default in any respect thereunder where such default would have a Material
Adverse Effect.
i. No Material
Adverse Effect. Since the date of the most recent financial statements of the Company included or incorporated by reference in
the Registration Statement and Prospectus, except as specifically disclosed in a subsequent SEC Document filed prior to the date on
which this representation is being made, there has not been (i) any Material Adverse Effect, or any development that would result in
a Material Adverse Effect; (ii) any transaction which is material to the Company and the Subsidiaries taken as a whole; (iii) any
obligation or liability, direct or contingent (including any off-balance sheet obligations), incurred by the Company or any of the
Subsidiaries, which is material to the Company and the Subsidiaries taken as a whole; (iv) any material change in the capital stock
(other than (A) the grant of additional options or awards under the Company’s existing equity incentive plans; (B) changes in
the number of outstanding shares of Common Stock due to the issuance of shares upon the exercise, vesting or conversion of
securities exercisable for, or convertible into, Common Stock outstanding on the date hereof; (C) as a result of the issuance of
Placement Shares; (D) any repurchases of capital stock of the Company; (E) as described in a proxy statement filed on Schedule 14A
or a Registration Statement on Form S-4; or (F) otherwise publicly announced) or outstanding long-term indebtedness of the Company
or any of the Subsidiaries; or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the
Company or any Subsidiary, other than in each case above in the ordinary course of business or as otherwise disclosed in the
Registration Statement or Prospectus (including any Incorporated Document or SEC Document).
j. Capitalization.
The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and non-assessable and,
other than as disclosed in the Registration Statement or the Prospectus, are not subject to any preemptive rights, rights of first
refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in the Registration
Statement and the Prospectus as of the dates referred to therein (other than (i) the grant of additional options or awards under the
Company’s existing equity incentive plans; (ii) changes in the number of outstanding shares of Common Stock due to the
issuance of shares upon the exercise, vesting or conversion of securities exercisable for, or convertible into, Common Stock
outstanding on the date hereof; (iii) as a result of the issuance of Placement Shares; or (iv) any repurchases of capital stock of
the Company) and such authorized capital stock conforms to the description thereof set forth in the Registration Statement and the
Prospectus. The description of the Common Stock in the Registration Statement and the Prospectus is complete and accurate in all
material respects. Other than as set forth or described in or contemplated by the Registration Statement or the Prospectus, as of
the dates referred to therein, the Company did not have outstanding any options to purchase, or any rights or warrants to subscribe
for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any
shares of capital stock or other securities.
k. S-3
Eligibility. (i) At the time of filing the Registration Statement and (ii) at the time of the most recent amendment thereto for
the purposes of complying with Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), the Company met the then
applicable requirements for use of Form S-3 under the Securities Act, including compliance with General Instruction I.B.6 of Form
S-3, as applicable. The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell
company for at least twelve (12) calendar months previously and if it has been a shell company at any time previously, has filed
current Form 10 information (as defined in General Instruction I.B.6 of Form S-3) with the Commission at least twelve (12) calendar
months previously reflecting its status as an entity that is not a shell company.
l. Authorization;
Enforceability. The Company has full corporate power and authority to enter into this Agreement and perform the transactions
contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding
agreement of the Company enforceable against the Company in accordance with its terms, except to the extent that (i) enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and
by general equitable principles; and (ii) the indemnification and contribution provisions of Section 11 hereof may be limited
by federal or state securities laws and public policy considerations in respect thereof.
m. Authorization of
Placement Shares. The Placement Shares, when issued and delivered pursuant to the terms approved by the board of directors of
the Company or a duly authorized committee thereof, or a duly authorized executive officer, against payment therefor as provided
herein, will be duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien,
encumbrance, security interest or other claim (other than any pledge, lien, encumbrance, security interest or other claim arising
from an act or omission of AGP or a purchaser), including any statutory or contractual preemptive rights, resale rights, rights of
first refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Placement Shares, when
issued, will conform in all material respects to the description thereof set forth in or incorporated or deemed incorporated into
the Prospectus.
n. No Consents
Required. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or any
governmental or regulatory authority having jurisdiction over the Company is required for the execution, delivery and performance by
the Company of this Agreement, and the issuance and sale by the Company of the Placement Shares as contemplated hereby, except for
such consents, approvals, authorizations, orders and registrations or qualifications (i) as may be required under applicable state
securities laws or by the by-laws and rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”) or the
Exchange, including any notices that may be required by the Exchange, in connection with the sale of the Placement Shares by AGP;
(ii) as may be required under the Securities Act; and (iii) as have been previously obtained by the Company.
o. No Preferential
Rights. (i) No person, as such term is defined in Rule 1-02
of Regulation S-X promulgated under the Securities Act (each, a “Person”), has the right, contractual or
otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares of any other capital stock or other
securities of the Company (other than upon the exercise of options or warrants to purchase Common Stock, upon the exercise of
options or stock awards that may be granted from time to time under the Company’s equity incentive plans or upon the
conversion of convertible securities of the Company); (ii) no Person has any preemptive rights, rights of first refusal, or any
other rights (whether pursuant to a “poison pill” provision or otherwise) to purchase any shares of Common Stock or
shares of any other capital stock or other securities of the Company from the Company which have not been duly waived with respect
to the offering contemplated hereby; (iii) no Person has the right to act as an underwriter or sales agent to the Company in
connection with the offer and sale of the Placement Shares; and (iv) no Person has the right, contractual or otherwise, to require
the Company to register under the Securities Act any shares of Common Stock or shares of any other capital stock or other securities
of the Company, or to include any such shares or other securities in the Registration Statement or the offering contemplated
thereby, whether as a result of the filing or effectiveness of the Registration Statement or the sale of the Placement Shares as
contemplated thereby or otherwise, except in each case for such rights as have been duly waived or satisfied on or prior to the date
hereof.
p. Independent Public
Accountant. GBQ Partners LLC (the “Accountant”), whose report on the consolidated financial statements of the
Company is filed with the Commission as part of the Company’s Transition Report on Form 10-KT for the eight-months ended
December 31, 2023, filed with the Commission and incorporated into the Registration Statement, are and, during the periods covered
by their report, were independent public accountants within the meaning of the Securities Act and the Public Company Accounting
Oversight Board (United States). To the Company’s Knowledge, the Accountant is not in violation of the auditor independence
requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to the Company.
q. Enforceability of
Agreements. Except as set forth in the Registration Statement or the Prospectus, all the agreements between the Company and
third parties expressly referenced in the Prospectus, other than such agreements that have expired by their terms or whose
termination is disclosed in documents filed by the Company on EDGAR, are valid and binding obligations of the Company, enforceable
in accordance with their respective terms, except (i) to the extent that (A) enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable
principles and (B) the indemnification provisions of certain agreements may be limited by federal or state securities laws or public
policy considerations in respect thereof; and (ii) for any unenforceability that, individually or in the aggregate, would not have a
Material Adverse Effect.
r. No
Litigation. There are (i) no legal, governmental or regulatory actions, suits or proceedings pending, nor, to the Company’s
Knowledge, any legal, governmental or regulatory investigations, to which the Company or a Subsidiary is a party or to which any property
of the Company or any Subsidiary is the subject that, individually or in the aggregate, if determined adversely to the Company or any
Subsidiary, would have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations
under this Agreement; (ii) to the Company’s Knowledge, no actions, suits or proceedings are threatened or contemplated by any governmental
or regulatory authority or threatened by others that, individually or in the aggregate, if determined adversely to the Company or any
Subsidiary, would have a Material Adverse Effect; and (iii) no current or pending legal, governmental or regulatory actions, suits, proceedings
or, to the Company’s Knowledge, investigations that are required under the Securities Act to be described in the Prospectus that
are not described in the Prospectus (including any Incorporated Document or SEC Document). The Company and the Subsidiaries are in compliance
with all applicable federal, state, local and foreign laws, regulations, orders and decrees governing their business, except where noncompliance
would not, singularly or in the aggregate, have a Material Adverse Effect.
s. Licenses and
Permits. The Company and its Subsidiaries possess and have obtained all licenses, certificates, consents, orders, approvals,
permits and other authorizations issued by, and have made all declarations and filings with, the appropriate federal, state, local
or foreign governmental or regulatory authorities that are necessary for the ownership or lease of their respective properties or
the conduct of their respective businesses as described in the Registration Statement and the Prospectus (the
“Permits”), except where the failure to possess, obtain or make the same would not, individually or in the
aggregate, would have a Material Adverse Effect. The Company and its Subsidiaries have not received written notice of any proceeding
relating to revocation or modification of any such Permit or has any reason to believe that such Permit will not be renewed in the
ordinary course, except where the failure to obtain any such renewal would not, individually or in the aggregate, have a Material
Adverse Effect.
t. No Material
Defaults. Neither the Company nor any Subsidiary has defaulted on any installment on indebtedness for borrowed money or on any
rental on one or more long-term leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect. The
Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Transition Report
on Form 10-KT, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults,
individually or in the aggregate, has had or would have a Material Adverse Effect.
u. Certain Market
Activities. Neither the Company, nor any Subsidiary, nor, to the Company’s Knowledge, any of their respective directors,
officers or controlling persons has taken, directly or indirectly, any action designed, or that has constituted or would cause or
result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Placement Shares.
v. Broker/Dealer
Relationships. Neither the Company nor any Subsidiary or any related entities (i) is required to register as a
“broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly
through one or more intermediaries, controls or is a “person associated with a member” or “associated person of a
member” (within the meaning set forth in the FINRA Manual).
w. No Reliance.
The Company has not relied upon AGP or legal counsel for AGP for any legal, tax or accounting advice in connection with the offering
and sale of the Placement Shares.
x. Taxes. The
Company and the Subsidiaries have filed all federal, state, local and foreign tax returns which have been required to be filed and
paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested in
good faith, except where the failure to do so would not have a Material Adverse Effect. Except as otherwise disclosed in or
contemplated by the Registration Statement or the Prospectus, no tax deficiency has been determined adversely to the Company or any
Subsidiary which has had, or would have, individually or in the aggregate, a Material Adverse Effect. There are not any federal,
state or other governmental tax deficiency, penalty or assessment which has been asserted or threatened against it which would have
a Material Adverse Effect to the Company’s Knowledge.
y. Title to Real and
Personal Property. The Company and the Subsidiaries have good and valid title to all items of real property and good and valid
title to all personal property described in the Registration Statement or Prospectus as being owned by them that are material to the
businesses of the Company or such Subsidiary, in each case free and clear of all liens, encumbrances and claims, except those that
(i) are described in the Registration Statement or the Prospectus, (ii) do not materially interfere with the use made and proposed
to be made of such property by the Company and the Subsidiaries or (iii) would not, individually or in the aggregate, have a
Material Adverse Effect. Any real property described in the Registration Statement or Prospectus as being leased by the Company and
the Subsidiaries is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere
with the use made or proposed to be made of such property by the Company or the Subsidiaries or (B) would not, individually or in
the aggregate, have a Material Adverse Effect.
z. Intellectual
Property. The Company and the Subsidiaries own or possess, or can acquire, adequate enforceable rights to use all patents,
patent applications, trademarks (both registered and unregistered), trade names, trademark registrations, service marks, service
mark registrations, Internet domain name registrations, copyrights, copyright registrations, licenses and know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures) (collectively, the
“Intellectual Property”), necessary for the conduct of their respective businesses as conducted as of the date
hereof, except to the extent that the failure to own or possess adequate rights to use such Intellectual Property would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company and the Subsidiaries have
not received any written notice of any claim of infringement or conflict which asserted Intellectual Property rights of others,
which infringement or conflict, if the subject of an unfavorable decision, would result in a Material Adverse Effect. There are no
pending, or, to the Company’s Knowledge, threatened judicial proceedings or interference proceedings against the Company or
any of its Subsidiaries challenging the Company’s or any Subsidiary’s rights in or to or the validity of the scope of
any of the Company’s or its Subsidiaries’ patents, patent applications, proprietary information or other Intellectual
Property. To the Company’s Knowledge, no other entity or individual has any right or claim in any of the Company’s or
any of its Subsidiary’s patents, patent applications or any patent to be issued therefrom by virtue of any contract, license
or other agreement entered into between such entity or individual and the Company or any Subsidiary or by any non-contractual
obligation of the Company or a Subsidiary, other than by written licenses granted by the Company or any Subsidiary. The Company has
not received any written notice of any claim challenging the rights of the Company or its Subsidiaries in or to any Intellectual
Property owned, licensed or optioned by the Company or any Subsidiary which claim, if the subject of an unfavorable decision, would
result in a Material Adverse Effect.
aa. Compliance with
Applicable Laws. The Company and its Subsidiaries are and at all times have been in material compliance with all laws applicable
to the Company or a Subsidiary or their respective businesses, except for such non-compliance that would not, individually or in the
aggregate, have a Material Adverse Effect.
bb. Environmental
Laws. The Company and the Subsidiaries: (i) are in compliance with any and all applicable federal, state, local and foreign
laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have
received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses as described in the Registration Statement and the Prospectus; and (iii) have not received
notice of any actual or potential liability for the investigation or remediation of any disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such
failure to comply or failure to receive required permits, licenses or other approvals, or liability as would not, individually or in
the aggregate, have a Material Adverse Effect.
cc. Disclosure
Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that: (i)
transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. The Company is not aware of any material weaknesses in its internal control over financial reporting (other than
as set forth in the Registration Statement or the Prospectus). Since the date of the latest audited financial statements of the
Company included in the Prospectus, there has been no change in the Company’s internal control over financial reporting that
has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting
(other than as set forth in the Registration Statement or the Prospectus). The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) that comply with the requirements of the Exchange Act. The
Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of a date
within ninety (90) days prior to the filing date of the Transition Report on Form 10-KT for the fiscal year most recently ended
(such date, the “Evaluation Date”). The Company presented in its Transition Report on Form 10-KT for the fiscal
year most recently ended the conclusions of the certifying officers about the effectiveness of the disclosure controls and
procedures based on their evaluations as of the most recent Evaluation Date, and stated that such “disclosure controls and
procedures” are effective as of such Evaluation Date.
dd. Sarbanes-Oxley
Act. There is and has been no failure on the part of the Company or, to Company’s Knowledge, any of the Company’s
directors or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the
Sarbanes-Oxley Act and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal
financial officer of the Company (or each former principal executive officer of the Company and each former principal financial
officer of the Company as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with
respect to all reports, schedules, forms, statements and other documents required to be filed by it or furnished by it to the
Commission during the past twelve (12) months. For purposes of the preceding sentence, “principal executive officer” and
“principal financial officer” shall have the meanings given to such terms in the Exchange Act Rules 13a-15 and
15d-15.
ee. Finder’s
Fees. Neither the Company nor any Subsidiary has incurred any liability for any finder’s fees, brokerage commissions or
similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to AGP pursuant
to this Agreement.
ff. Labor
Disputes. No labor disturbance by or dispute with employees of the Company or any Subsidiary exists or, to the Company’s
Knowledge, is threatened which would result in a Material Adverse Effect.
gg. Investment
Company Act. Neither the Company nor any Subsidiary is or, after giving effect to the offering and sale of the Placement Shares,
will be required to register as an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company
Act”).
hh. Operations.
The operations of the Company and the Subsidiaries are and have been conducted at all times in compliance with applicable financial
record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions to which the Company or the Subsidiaries are subject, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency or
authority having jurisdiction over the Company or any Subsidiary (collectively, the “Money Laundering Laws”),
except where the failure to be in such compliance would not result in a Material Adverse Effect; and no action, suit or proceeding
by or before any court or arbitrator or governmental agency, authority or body having jurisdiction over the Company or any
Subsidiary involving the Company or any Subsidiary with respect to any Money Laundering Laws is pending or, to the Company’s
Knowledge, threatened.
ii. Off-Balance Sheet
Arrangements. There are no transactions, arrangements or other relationships between and/or among the Company, and/or, to the
Company’s Knowledge, any of its affiliates and any unconsolidated entity, including, but not limited to, any structured
finance, special purpose or limited purpose entity (each, an “Off Balance Sheet Transaction”) that would affect
materially the Company’s liquidity or the availability of or requirements for its capital resources, including those Off
Balance Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of
Financial Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Registration
Statement or the Prospectus which have not been described as required.
jj. Underwriter
Agreements. Except as set forth in the Registration Statement or the Prospectus, the Company is not a party to any agreement
with an agent or underwriter for any other “at the market” or equity line of credit transaction.
kk. ERISA. To the
Company’s Knowledge: (i) each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) that is maintained, administered or contributed to by the
Company or any of its affiliates for employees or former employees of the Company and the Subsidiaries has been maintained in
material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not
limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) no prohibited transaction,
within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to
the Company or any Subsidiary with respect to any such plan excluding transactions effected pursuant to a statutory or
administrative exemption; and (iii) for each such plan that is subject to the funding rules of Section 412 of the Code or Section
302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or
not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid
contributions) equals or exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial
assumptions, other than, in the case of clause (i), (ii) and (iii) above, as would not have a Material Adverse Effect.
ll. Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) (a “Forward-Looking Statement”) contained in the Registration Statement and the Prospectus has been
made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.
mm. Margin Rules.
Neither the issuance, sale and delivery of any of the Placement Shares nor the application of the proceeds thereof by the Company as
described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System.
nn. Insurance.
The Company and the Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company and the
Subsidiaries reasonably believe are adequate for the conduct of their business.
oo. No Improper
Practices. (i) Neither the Company nor the Subsidiaries nor, to the Company’s Knowledge, any of their respective executive
officers has, in the past five years, made any unlawful contributions to any candidate for any political office (or failed fully to
disclose any contribution in violation of law) or made any contribution or other payment to any official of, or candidate for, any
federal, state, municipal, or foreign office or other person charged with similar public or quasi-public duty in violation of any
law or of the character required to be disclosed in the Prospectus; (ii) no relationship, direct or indirect, exists between or
among the Company or the Subsidiaries or, to the Company’s Knowledge, any affiliate of any of them, on the one hand, and the
directors, officers and stockholders of the Company or the Subsidiaries, on the other hand, that is required by the Securities Act
to be described in the Registration Statement and the Prospectus that is not so described; (iii) no relationship, direct or
indirect, exists between or among the Company or the Subsidiaries or any affiliate of them, on the one hand, and the directors,
officers, stockholders or directors of the Company or the Subsidiaries, on the other hand, that is required by the rules of FINRA to
be described in the Registration Statement and the Prospectus that is not so described; (iv) there are no material outstanding loans
or advances or material guarantees of indebtedness by the Company or the Subsidiaries to or for the benefit of any of their
respective officers or directors or any of the members of the families of any of them; and (v) the Company has not offered, or
caused any placement agent to offer, Common Stock to any person with the intent to influence unlawfully (A) a customer or supplier
of the Company or any of the Subsidiaries to alter the customer’s or supplier’s level or type of business with the
Company or any of the Subsidiaries or (B) a trade journalist or publication to write or publish favorable information about the
Company or the Subsidiaries or any of their respective products or services; and (vi) neither the Company nor any of the
Subsidiaries nor, to the Company’s Knowledge, any employee or agent of the Company or any of the Subsidiaries has made any
payment of funds of the Company or any of the Subsidiaries or received or retained any funds in violation of any law, rule or
regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977), which payment, receipt or retention of funds
is of a character required to be disclosed in the Registration Statement or the Prospectus.
pp. Status Under the
Securities Act. The Company was not and is not an ineligible issuer as defined in Rule 405 under the Securities Act at the times
specified in Rules 164 and 433 under the Securities Act in connection with the offering of any of the Placement Shares.
qq. No Misstatement
or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and as of each
Applicable Time (as defined in Section 25 below), did not, does not and will not, through the completion of the Placement or
Placements for which such Issuer Free Writing Prospectus is issued, include any information that conflicted, conflicts or will
conflict with the information contained in the Registration Statement or the Prospectus, including any Incorporated Document that
has not been superseded or modified. The foregoing sentence does not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written information furnished to the Company by AGP specifically for use
therein.
rr. No Conflicts.
Neither the execution of this Agreement by the Company, nor the issuance, offering or sale of any of the Placement Shares, nor the
consummation by the Company of any of the transactions contemplated herein, nor the compliance by the Company with the terms and
provisions hereof will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will
constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any Subsidiary pursuant to the terms of any contract or other agreement to which the
Company or any Subsidiary may be bound or to which any of the property or assets of the Company or any Subsidiary is subject, except
(i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts, breaches and defaults that would not have
a Material Adverse Effect; nor will such action result (x) in any violation of the provisions of the certificate of incorporation or
bylaws of the Company or the organizational or governing documents of any Subsidiary, or (y) in any material violation of the
provisions of any statute or any order, rule or regulation applicable to the Company or any Subsidiary or of any court or arbitrator
or of any federal, state, foreign or other regulatory or governmental authority having jurisdiction over the Company or any
Subsidiary, except where such violation would not have a Material Adverse Effect.
ss. OFAC.
(i) Neither the Company nor any Subsidiary (collectively, the “Entity”) nor, to the Company’s Knowledge, any
director, officer, employee, agent, affiliate or representative of the Entity, is a government, individual, or entity (in this paragraph
(i), “Person”) that is, or is owned or controlled by a Person that is:
(a)
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control
(“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”),
His Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”),
nor
(b)
located, organized or resident in a country or territory that is the subject of Sanctions.
(ii)
The Entity will not, directly or indirectly, knowingly use the proceeds of any offering contemplated hereby, or lend, contribute
or otherwise make available any such proceeds to any subsidiary, joint venture partner or other Person:
(a)
to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such
funding or facilitation, is the subject of Sanctions; or
(b)
in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in any such
offering, whether as underwriter, advisor, investor or otherwise).
(iii)
The Entity represents and covenants that, except as set forth in the Registration Statement and the Prospectus, for the past five
(5) years, it has not knowingly engaged in and is not now knowingly engaged in any dealing or transactions with any Person, or in any
country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.
tt. Cybersecurity and
IT Systems. Except as otherwise described in the Registration Statement and the Prospectus, and except as would not,
individually or in the aggregate, result in a Material Adverse Effect, (i) to the Company’s Knowledge, there has been no
security breach or attack or other compromise of or relating to any of the Company’s and the Subsidiaries’ information
technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees,
suppliers, vendors and any third party data maintained by or on behalf of them), equipment or technology (“IT Systems and
Data”); (ii) to the Company’s Knowledge, the Company and the Subsidiaries have not been notified in writing of, and
have no knowledge of, any event or condition that would result in any security breach, attack or compromise to their IT Systems and
Data; (iii) the Company and the Subsidiaries have complied in all material respects, and are presently in material compliance with,
all applicable laws, statutes or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory
authority and all industry guidelines, standards, internal policies and contractual obligations relating to the privacy and security
of IT Systems and Data and to the protection of the IT Systems and Data from unauthorized use, access, misappropriation or
modification; and (iv) the Company and the Subsidiaries have implemented commercially reasonable backup and disaster recovery
technology consistent with industry standards and practices.
uu. Stock Transfer
Taxes. On each Settlement Date, all material stock transfer or other taxes (other than income taxes) which are required to be
paid by the Company in connection with the sale and transfer of the Placement Shares to be sold hereunder will be, or will have
been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with by
the Company in all material respects.
vv. FINRA Member
Affiliations. There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the
Company’s Knowledge, any five percent (5%) or greater stockholder of the Company, except as set forth in the Registration
Statement, the base prospectus, any Prospectus Supplement or the Prospectus. Any certificate signed by an officer of the Company and
delivered to AGP or to counsel for AGP pursuant to or in connection with this Agreement shall be deemed to be a representation and
warranty by the Company to AGP as to the matters set forth therein.
7. Covenants of the
Company. The Company covenants and agrees with AGP that:
a. Registration
Statement Amendments. After the date of this Agreement and during any period in which a prospectus relating to any Placement
Shares is required to be delivered by AGP under the Securities Act (including in circumstances where such requirement may be
satisfied pursuant to Rule 172 or 173 under the Securities Act, or any similar rule) in connection with the offering or the sale of
Placement Shares (the “Prospectus Delivery Period”): (i) the Company will notify AGP promptly of the time when
any subsequent amendment to the Registration Statement, other than documents incorporated by reference or amendments not related to
any Placement, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus (other
than documents incorporated by reference therein) has been filed and of any request by the Commission for any amendment or
supplement to the Registration Statement or Prospectus related to the Placement or for additional information related to the
Placement; (ii) the Company will prepare and file with the Commission, promptly upon AGP’s request, any amendments or
supplements to the Registration Statement or Prospectus that, upon the advice of the Company’s legal counsel, may be necessary
or advisable in connection with the distribution of the Placement Shares by AGP (provided, however, that the failure
of AGP to make such request shall not relieve the Company of any obligation or liability hereunder, or affect AGP’s right to
rely on the representations and warranties made by the Company in this Agreement and provided, further, that the only remedy AGP
shall have with respect to the failure to make such filing shall be to cease making sales under this Agreement until such amendment
or supplement is filed); (iii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus
relating to the Placement Shares or a security convertible into or exercisable or exchangeable for the Placement Shares (other than
an Incorporated Document) unless a copy thereof has been submitted to AGP within a reasonable period of time before the filing and
AGP has not reasonably objected thereto (provided, however, that (A) the failure of AGP to make such objection shall
not relieve the Company of any obligation or liability hereunder, or affect AGP’s right to rely on the representations and
warranties made by the Company in this Agreement and (B) the Company has no obligation to provide AGP any advance copy of such
filing or to provide AGP an opportunity to object to such filing if the filing does not name AGP or does not relate to the
transaction herein provided; and provided, further, that the only remedy AGP shall have with respect to the failure by the Company
to obtain such consent shall be to cease making sales under this Agreement) and the Company will furnish to AGP at the time of
filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or
Prospectus, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to the
Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or,
in the case of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant to the
Exchange Act, within the time period prescribed (the determination to file or not file any amendment or supplement with the
Commission under this Section 7(a), based on the Company’s reasonable opinion or reasonable objections, shall be made
exclusively by the Company).
b. Notice of
Commission Stop Orders. The Company will advise AGP, promptly after it receives notice or to the Company’s Knowledge,
obtains knowledge thereof, of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceeding for any such purpose; and it will use its commercially
reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued. The
Company will advise AGP promptly after it receives any request by the Commission for any amendments to the Registration Statement or
any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or for additional information related to the
offering of the Placement Shares or for additional information related to the Registration Statement, the Prospectus or any Issuer
Free Writing Prospectus.
c. Delivery of
Prospectus; Subsequent Changes. During the Prospectus Delivery Period, the Company will comply with all requirements imposed
upon it by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and
any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a),
13(c), 14, 15(d) or any other provision of or under the Exchange Act. If the Company has omitted any information from the
Registration Statement pursuant to Rule 430A under the Securities Act, it will use its commercially reasonable efforts to comply
with the provisions of and make all requisite filings with the Commission pursuant to said Rule 430A and to notify AGP promptly of
all such filings. If during the Prospectus Delivery Period any event occurs as a result of which the Prospectus as then amended or
supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances then existing, not misleading, or if during such Prospectus Delivery Period it is necessary
to amend or supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will (i) promptly
notify AGP to suspend the offering of Placement Shares during such period, and (ii) promptly amend or supplement the Registration
Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay the filing of any amendment or supplement, if in the judgment of the Company, it is in the best interest
of the Company; and provided further, however, that the Company shall not be required to furnish any document (other than the
Prospectus) to AGP to the extent such document is available on EDGAR.
d. Listing of
Placement Shares. During the Prospectus Delivery Period, the Company will use its commercially reasonable efforts to cause the
Placement Shares to be listed on the Exchange and to qualify the Placement Shares for sale under the securities laws of such
jurisdictions in the United States as AGP reasonably designates and to continue such qualifications in effect so long as required
for the distribution of the Placement Shares; provided, however, that the Company shall not be required in connection
therewith to qualify as a foreign corporation or dealer in securities, file a general consent to service of process, or subject
itself to taxation in any jurisdiction if it is not otherwise so subject.
e. Delivery of
Registration Statement and Prospectus. The Company will furnish to AGP and its counsel (at the reasonable expense of the
Company) copies of the Registration Statement, the Prospectus (including all Incorporated Documents) and all amendments and
supplements to the Registration Statement or Prospectus that are filed with the Commission during the Prospectus Delivery Period
(including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein), in
each case as soon as reasonably practicable and in such quantities as AGP may from time to time reasonably request and, at
AGP’s reasonable request, will also furnish copies of the Prospectus to each exchange or market on which sales of the
Placement Shares may be made; provided, however, that the Company shall not be required to furnish any document (other
than the Prospectus) to AGP to the extent such document is available on EDGAR.
f. Earnings
Statement. The Company will make generally available to its security holders as soon as practicable, but in any event not later
than fifteen (15) months after the end of the Company’s current fiscal quarter, an earnings statement covering a twelve (12)
month period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.
g. Use of
Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of
Proceeds.”
h. Notice of Other
Sales. Without the prior written consent of AGP, which shall not be unreasonably withheld, the Company will not, directly or
indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the
Placement Shares offered pursuant to this Agreement) or securities convertible into or exercisable or exchangeable for Common Stock,
warrants or any rights to purchase or acquire, Common Stock during the period beginning the second (2nd) Trading Day
immediately prior to the date on which any Placement Notice is delivered to AGP hereunder and ending on the second (2nd)
Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice
(or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement
Notice, the date of such suspension or termination); and will not directly or indirectly in any other “at the market” or
equity line of credit transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common
Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exercisable or
exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock prior to the termination of this
Agreement; provided, however, that such restrictions will not apply in connection with the Company’s issuance or
sale of (i) Common Stock, options to purchase Common Stock or Common Stock issuable upon the exercise or vesting of options or other
equity awards, pursuant to any stock option, equity incentive plan, benefits plan, stock ownership plan or dividend reinvestment
plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now
in effect or hereafter implemented; (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options or
other rights or agreements in effect or outstanding as of the date hereof, and disclosed in the SEC Documents by the Company
available on EDGAR or otherwise in writing to AGP; (iii) Common Stock, or securities convertible into or exercisable for Common
Stock, offered and sold in a privately negotiated transaction to vendors, customers, strategic partners or potential strategic
partners or other investors conducted in a manner so as not to be integrated with the offering of Common Stock hereby; and (iv)
Common Stock in connection with any acquisition, strategic investment, commercial transaction or other similar transaction not
primarily for equity raising purposes (including any joint venture, strategic alliance or partnership) or in settlement of any
litigation.
i. Change
of Circumstances. The Company will, at any time during the pendency of a Placement Notice advise AGP promptly after it shall have
received notice or obtained to the Company’s Knowledge thereof, of any information or fact that would alter or affect in any material
respect any opinion, certificate, letter or other document required to be provided to AGP pursuant to this Agreement.
j. Due
Diligence Cooperation. During the term of this Agreement, the Company will cooperate with any reasonable due diligence review conducted
by AGP or its representatives in connection with the transactions contemplated hereby, including, without limitation, providing information
and making available documents and senior corporate officers, during regular business hours and at the Company’s principal offices,
as AGP may reasonably request. The Company shall reimburse AGP for AGP’s counsel’s fees in each such due diligence update
session, up to a maximum of $5,000 per update for which the Company is obligated to deliver a certification pursuant to clause (ii) of
Section 7(l) and clause (iii) of Section 7(l), respectively, for which no waiver is applicable, plus any incidental expense
incurred by AGP in connection therewith; provided that in no case such fees payable by the Company pursuant to this Section 7(j)
shall exceed $20,000 in any given twelve (12) month period and that such fees payable by the Company shall only be payable in the event
the Company conducts bring-down activities for a Placement during the relevant quarter.
k. Required Filings
Relating to Placement of Placement Shares. The Company shall set forth in each Annual Report on Form 10-K and Quarterly Report
on Form 10-Q filed by the Company with the Commission in respect of any quarter in which sales of Placement Shares were made by or
through AGP under this Agreement, with regard to the relevant period, the amount of Placement Shares sold to or through AGP, the Net
Proceeds to the Company and the compensation payable by the Company to AGP with respect to such sales of Placement Shares. To the
extent that the filing of a prospectus supplement with the Commission with respect to any sales of Placement Shares becomes required
under Rule 424(b) under the Securities Act, the Company agrees that, on or before such dates as the Securities Act shall require,
the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the
Securities Act, which prospectus supplement will set forth, with regard to the relevant period, the amount of Placement Shares sold
to or through AGP, the Net Proceeds to the Company and the compensation payable by the Company to AGP with respect to such Placement
Shares (provided that the Company may satisfy this obligation by effecting a filing in accordance with the Exchange Act with respect
to such information), and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which
such sales were effected as may be required by the rules or regulations of such exchange or market.
l. Representation
Dates; Certificate. Each time during the term of this Agreement that the Company:
(i)
amends or supplements (other than by means of a prospectus supplement relating solely to an offering of securities other than the
Placement Shares) the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment,
sticker, or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating
to the Placement Shares;
(ii)
files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended audited financial information
or a material amendment to the previously filed Form 10-K) (the “10-K Representation Date”);
(iii) files
its quarterly reports on Form 10-Q under the Exchange Act; or
(iv) files
a current report on Form 8-K containing amended financial information (other than information “furnished” pursuant to
Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of
certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the
Exchange Act;
(Each date of filing of one
or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”) the Company shall
furnish AGP (but in the case of clause (iv) above only if AGP reasonably determines that the information contained in such Form 8-K is
material) with a certificate, in the form attached hereto as Exhibit 7(l). The requirement to provide a certificate under this
Section 7(l) shall be automatically waived for any Representation Date occurring at a time at which no Placement Notice is pending,
which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar
quarter shall be considered a Representation Date) and the next occurring Representation Date on which the Company files its annual report
on Form 10-K. Notwithstanding the foregoing, (i) upon the delivery of the first Placement Notice hereunder and (ii) if the Company subsequently
decides to sell Placement Shares following a Representation Date when the Company relied on such waiver and did not provide AGP with a
certificate under this Section 7(1), then before AGP sells any Placement Shares, the Company shall provide AGP with a certificate,
in the form attached hereto as Exhibit 7(l), dated the date of the Placement Notice.
m. Legal Opinion.
On or prior to the date of the first Placement Notice given hereunder, the Company shall cause to be furnished to AGP a written
opinion and a negative assurance letter of Mitchell Silberberg & Knupp LLP (“Company Counsel”), in form and
substance reasonably satisfactory to AGP. Thereafter, within five (5) Trading Days of each Representation Date with respect to which
the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(l) for which no waiver is
applicable, and not more than once per calendar quarter, the Company shall cause to be furnished to AGP an opinion and negative
assurance letter of Company Counsel, each in form and substance reasonably satisfactory to AGP; provided that, in lieu of furnishing
such opinion and negative assurance letter for subsequent periodic filings under the Exchange Act, each such counsel may furnish AGP
with a letter (a “Reliance Letter”) to the effect that AGP may rely on the opinion and negative assurance letter
previously delivered under this Section 7(m) to the same extent as if it were dated the date of such letter (except that
statements in such prior letter shall be deemed to relate to the Registration Statement and the Prospectus as amended or
supplemented as of the date of the Reliance Letter).
n. Comfort
Letter. On or prior to the date of the first Placement Notice given hereunder and within five (5) Trading Days after each
subsequent Representation Date, the Company shall cause its independent accountants to furnish AGP letters (the “Comfort
Letters”), dated the date the Comfort Letter is delivered, which shall meet the requirements set forth in this Section
7(n). The Comfort Letter from the Company’s independent accountants shall be in a form and substance reasonably
satisfactory to AGP, (i) confirming that they are an independent public accounting firm within the meaning of the Securities Act and
the PCAOB and (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and
other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered
public offerings (the first such letter, the “Initial Comfort Letter”) and, where applicable, (iii) updating the
Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such
date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date
of such letter.
o. Market
Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that
constitutes or would constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of Common Stock; or (ii) sell, bid for, or purchase Common Stock in violation of Regulation M, or pay anyone any
compensation for soliciting purchases of the Placement Shares other than AGP.
p. Investment Company
Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor any of the
Subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment company,” as such
term is defined in the Investment Company Act.
q. No Offer to
Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and AGP in its capacity as agent hereunder
pursuant to Section 23, neither of AGP nor the Company (including its agents and representatives, other than AGP in its
capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405),
required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement Shares
hereunder.
r. Sarbanes-Oxley
Act. The Company will maintain and keep accurate books and records reflecting its assets and maintain internal accounting
controls in a manner designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP and including those policies and procedures that (i) pertain
to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of
the Company’s consolidated financial statements in accordance with GAAP; (iii) provide reasonable assurance that receipts and
expenditures of the Company are being made only in accordance with management’s and the Company’s directors’
authorization; and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the Company’s assets that could have a material effect on its financial statements. The Company will maintain
disclosure controls and procedures that comply with the requirements of the Exchange Act.
8. Representations and
Covenants of AGP. AGP represents and warrants that it is duly registered as a broker-dealer under FINRA, the Exchange Act and
the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states in
which AGP is exempt from registration or such registration is not otherwise required. AGP shall continue, for the term of this
Agreement, to be duly registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and regulations of
each state in which the Placement Shares will be offered and sold, except such states in which it is exempt from registration or
such registration is not otherwise required, during the term of this Agreement. AGP shall comply with all applicable laws and
regulations, including without limitation Regulation M, in connection with the transactions contemplated by this Agreement,
including the issuance and sale through AGP of the Placement Shares.
9. Payment of
Expenses. The Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i)
the preparation, filing, including any fees required by the Commission, and printing or reproduction of the Registration Statement
(including financial statements and exhibits) as originally filed and of each amendment and supplement thereto and each Issuer Free
Writing Prospectus, in such number as AGP shall deem reasonably necessary; (ii) the printing (or reproduction) and delivery to AGP
of this Agreement, and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery
of the Placement Shares; (iii) the preparation, issuance and delivery of the certificates, if any, for the Placement Shares to AGP,
including any stock or other transfer taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale,
issuance or delivery of the Placement Shares to AGP or the purchaser thereof; (iv) the fees and disbursements of the counsel,
accountants and other advisors to the Company; (v) the reasonable and documented out-of-pocket fees and disbursements of counsel to
AGP in an amount not to exceed $40,000 (excluding any periodic due diligence fees provided for under Section 7(j)); (vi) the
fees and expenses of the transfer agent and registrar for the Common Stock, (vii) the filing fees incident to any review by FINRA of
the terms of the sale of the Placement Shares; and (viii) the fees and expenses incurred in connection with the listing of the
Placement Shares on the Exchange.
10. Conditions to
AGP’s Obligations. The obligations of AGP hereunder with respect to a Placement will be subject to the continuing accuracy
and completeness of the representations and warranties made by the Company herein (other than those representations and warranties
made as of a specified date or time), to the due performance in all material respects by the Company of its obligations hereunder,
to the completion by AGP of a due diligence review satisfactory to it in its reasonable judgment, and to the continuing reasonable
satisfaction (or waiver in writing by AGP in its sole discretion) of the following additional conditions:
a. Registration
Statement Effective. The Registration Statement shall remain effective and shall be available for the sale of all Placement
Shares contemplated to be issued by any Placement Notice.
b. No Material
Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request for
additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration
Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or receipt by the Company of notification of the initiation of any
proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Placement Shares for sale in any jurisdiction or receipt by the Company of
notification of the initiation of, or a threat to initiate, any proceeding for such purpose; or (iv) the occurrence of any event
that makes any material statement made in the Registration Statement or the Prospectus or any material Incorporated Document untrue
in any material respect or that requires the making of any changes in the Registration Statement, the Prospectus or any material
Incorporated Document so that, in the case of the Registration Statement, it will not contain any materially untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading and, that in the case of the Prospectus or any material Incorporated Document, it will not contain any materially untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.
c. No Misstatement or
Material Omission. AGP shall not have advised the Company that the Registration Statement or Prospectus, or any amendment or
supplement thereto, contains an untrue statement of fact that in AGP’s reasonable opinion is material, or omits to state a
fact that in AGP’s reasonable opinion is material and is required to be stated therein or is necessary to make the statements
therein not misleading.
d. Material
Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there
shall not have been any Material Adverse Effect, or any development that would cause a Material Adverse Effect, or a downgrading in
or withdrawal of the rating assigned to any of the Company’s securities (other than asset backed securities) by any
“nationally recognized statistical rating organization,” as such term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act (a “Rating Organization”), or a public announcement by any Rating Organization
that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities),
the effect of which, in the case of any such action by a Rating Organization described above, in the reasonable judgment of AGP
(without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable or
inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.
e. Legal Opinion.
AGP shall have received the opinion and negative assurance letter of Company Counsel required to be delivered pursuant to Section
7(m) on or before the date on which such delivery of such opinion and negative assurance letter are required pursuant to Section
7(m).
f. Comfort
Letter. AGP shall have received the Comfort Letter required to be delivered pursuant Section 7(n) on or before the date
on which such delivery of such letter is required pursuant to Section 7(n).
g. Representation
Certificate. AGP shall have received the certificate required to be delivered pursuant to Section 7(l) on or before the
date on which delivery of such certificate is required pursuant to Section 7(l).
h. Secretary’s
Certificate. On or prior to the first Representation Date, AGP shall have received a certificate, signed on behalf of the
Company by its corporate secretary, in form and substance satisfactory to AGP and its counsel.
i. No Suspension.
Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have been delisted from the
Exchange.
j. Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company
shall have furnished to AGP such appropriate further information, certificates and documents as AGP may reasonably request and which
are usually and customarily furnished by an issuer of securities in connection with a securities offering of the type contemplated
hereby. All such certificates and other documents will be in compliance with the provisions hereof.
k. Securities Act
Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the
issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule
424.
l. Approval
for Listing. The Placement Shares shall either have been approved for listing on the Exchange, subject only to notice of issuance,
or the Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any
Placement Notice.
m. No Termination
Event. There shall not have occurred any event that would permit AGP to terminate this Agreement pursuant to Section
13(a).
11. Indemnification and
Contribution.
a. Company
Indemnification. The Company agrees to indemnify and hold harmless AGP, its partners, members, directors, officers, employees
and agents and each person, if any, who controls AGP within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based
upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto),
or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein
not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any related Issuer Free
Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(ii)
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the
aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental authority, agency or body,
commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement
or omission; provided that (subject to Section 11(d) below) any such settlement is effected with the written consent of the Company,
which consent shall not unreasonably be delayed or withheld; and
(iii) against
any and all expense whatsoever, as incurred (including the reasonable and documented out-of-pocket fees and disbursements of
counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by
any governmental authority, agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under paragraph (i) or
(ii) above, provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or
expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in
reliance upon and in conformity with written information furnished to the Company by AGP expressly for use in the Registration
Statement (or any amendment thereto), or in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or
supplement thereto).
b. Indemnification by
AGP. AGP agrees to indemnify and hold harmless the Company and its directors and officers, and each person, if any, who (i)
controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled
by or is under common control with the Company, against any and all loss, liability, claim, damage and expense described in the
indemnity contained in Section 11(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement (or any amendments thereto) or in any related Issuer Free Writing
Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with information relating
to AGP and furnished to the Company in writing by AGP expressly for use therein.
c. Procedure. Any
party that proposes to assert the right to be indemnified under this Section 11 will, promptly after receipt of notice of
commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties
under this Section 11, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers
served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it
might have to any indemnified party otherwise than under this Section 11 and (ii) any liability that it may have to any
indemnified party under the foregoing provisions of this Section 11 unless, and only to the extent that, such omission
results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any
indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate
in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the
commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the
defense of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party
to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses of the indemnified party except as provided below and except for the reasonable costs of
investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have the
right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense
of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the
indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses
available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party,
(3) a conflict or potential conflict of interest exists (based on advice of counsel to the indemnified party) between the
indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of
such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact so employed counsel to assume the
defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the
reasonable and documented out-of-pocket fees, disbursements and other charges of counsel will be at the expense of the indemnifying
party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable and documented out-of-pocket fees, disbursements and other
charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or
parties. All such reasonable and documented out-of-pocket fees, disbursements and other charges will be reimbursed by the
indemnifying party promptly after the indemnifying party receives a written invoice relating to fees, disbursements and other
charges in reasonable detail. An indemnifying party will not, in any event, be liable for any settlement of any action or claim
effected without its written consent. No indemnifying party shall, without the prior written consent of each indemnified party,
settle or compromise or consent to the entry of any judgment in any pending or threatened litigation, investigation, action,
proceeding or claim relating to the matters contemplated by this Section 11 (whether or not any indemnified party is a party
thereto), unless such settlement, compromise or consent (1) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, action, proceeding or claim and (2) does not include a statement as to or
an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
d. Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 11 is applicable in accordance with its terms but for any reason is held to be unavailable from
the Company or AGP, the Company and AGP will contribute to the total losses, claims, liabilities, expenses and damages (including
any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any
action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other
than AGP, such as persons who control the Company within the meaning of the Securities Act or the Exchange Act, officers of the
Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) to which the
Company and AGP may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company
on the one hand and AGP on the other hand. The relative benefits received by the Company on the one hand and AGP on the other hand
shall be deemed to be in the same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting
expenses) received by the Company bear to the total compensation received by AGP (before deducting expenses) from the sale of
Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence is not permitted by
applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative
benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and AGP, on the other
hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage, or action in
respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company or AGP, the intent of the parties hereto
and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company
and AGP agree that it would not be just and equitable if contributions pursuant to this Section 11(d) were to be determined
by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to
herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action
in respect thereof, referred to above in this Section 11(d) shall be deemed to include, for the purpose of this Section
11(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending
any such action or claim to the extent consistent with Section 11(c) hereof. Notwithstanding the foregoing provisions of this Section
11(d), AGP shall not be required to contribute any amount in excess of the commissions received by it under this Agreement and
no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 11(d),
any person who controls a party to this Agreement within the meaning of the Securities Act or the Exchange Act, and any officers,
directors, partners, members, employees or agents of AGP, will have the same rights to contribution as that party, and each officer
who signed the Registration Statement and director of the Company will have the same rights to contribution as the Company, subject
in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any
action against such party in respect of which a claim for contribution may be made under this Section 11(d), will notify any
such party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties
from whom contribution may be sought from any other obligation it or they may have under this Section 11(d) except to the
extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses of the party from
whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of Section 11(c) hereof, no
party will be liable for contribution with respect to any action or claim settled without its written consent if such consent is
required pursuant to Section 11(c) hereof.
12. Representations and
Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 11 of this Agreement and
all representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of their
respective dates, regardless of (i) any investigation made by or on behalf of AGP, any controlling persons, or the Company (or any
of their respective officers, directors or controlling persons); (ii) delivery and acceptance of the Placement Shares and payment
therefor; or (iii) any termination of this Agreement.
13. Termination.
a.
AGP may terminate this Agreement immediately, by written notice to the Company, as hereinafter specified at any time (i) if there
has been, since the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any Material
Adverse Effect, or the occurrence of any development that would have a Material Adverse Effect that, in the sole judgment of AGP, is material
and adverse and makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement
Shares; (ii) if there has occurred any material adverse change in the financial markets in the United States or the international financial
markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective
change in national or international political, financial or economic conditions, in each case the effect of which is such as to make it,
in the reasonable judgment of AGP, impracticable or inadvisable to market the Placement Shares or to enforce contracts for the sale of
the Placement Shares; (iii) if trading in the Common Stock has been suspended or limited by the Commission or the Exchange, or if trading
generally on the Exchange has been suspended or limited, or minimum prices for trading have been fixed on the Exchange; (iv) if any suspension
of trading of any securities of the Company on any exchange or in the over-the-counter market shall have occurred and be continuing; (v)
if a major disruption of securities settlements or clearance services in the United States shall have occurred and be continuing; or (vi)
if a banking moratorium has been declared by either U.S. federal or New York authorities. Any such termination shall be without liability
of any party to any other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification
and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time;
Waiver of Jury Trial), and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such
termination. If AGP elects to terminate this Agreement as provided in this Section 13(a), AGP shall provide the required notice
as specified in Section 14 (Notices).
b.
The Company shall have the right, by giving five (5) days’ written notice as hereinafter specified to terminate this Agreement
in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any
other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial),
and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
c.
AGP shall have the right, by giving five (5) days’ written notice as hereinafter specified to terminate this Agreement in
its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any
other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial),
and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
d.
Unless earlier terminated pursuant to this Section 13, this Agreement shall terminate upon the earlier to occur of (i) the
36-month anniversary of the date of this Agreement; (ii) the issuance and sale of all of the Placement Shares through AGP on the terms
and subject to the conditions set forth herein; and (iii) pursuant to Sections 13(b) or (c) above or otherwise by mutual
agreement of the parties hereto, except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification
and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time;
Waiver of Jury Trial), and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such
termination.
e. This Agreement shall remain in full force and effect unless terminated pursuant to Sections 13(a), (b), (c),
or (d) above or otherwise by mutual written agreement of the parties hereto; provided, however, that any such termination
by mutual agreement shall in all cases be deemed to provide that Section 9 (Payment of Expenses), Section 11 (Indemnification
and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time;
Waiver of Jury Trial), and Section 19 (Consent to Jurisdiction) shall remain in full force and effect. Upon termination of this
Agreement, the Company shall not have any liability to AGP for any discount, commission or other compensation with respect to any Placement
Shares not otherwise sold by AGP under this Agreement.
f.
Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however,
that such termination shall not be effective until the close of business on the date of receipt of such notice by AGP or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement Shares
shall settle in accordance with the provisions of this Agreement.
14.
Notices. All notices or other communications required or permitted to be given by any party to any other party pursuant
to the terms of this Agreement shall be in writing, unless otherwise specified, and if sent to AGP, shall be delivered to:
A.G.P./Alliance Global Partners
590 Madison Avenue, 28th Floor
New York, NY 10022
Attention: Thomas J. Higgins
Telephone: [***]
Email: [***]
with a copy to:
Thompson Hine LLP
300 Madison Avenue, 27th
Floor
New York, NY 10017
Attention: Faith L. Charles
Telephone: (212) 908-3905
Email:
faith.charles@thompsonhine.com
and if to the Company, shall be delivered to:
reAlpha Tech Corp.
6515 Longshore Loop, Suite 100
Dublin, OH 43017
Attention: Michael J. Logozzo
Telephone: [***]
Email: [***]
with a copy to:
Mitchell Silberberg & Knupp LLP
437 Madison Ave., 25th Floor
New York, NY 10022
Attention: Nimish Patel; Blake Baron
Telephone: (310) 312-3102; (917) 546-7709
Email: nxp@msk.com; bjb@msk.com
Each party to this Agreement may change such address
for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication
shall be deemed given (i) when delivered personally, by email, or by verifiable facsimile transmission on or before 4:30 p.m., New York
City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day; (ii) on the next Business Day
after timely delivery to a nationally-recognized overnight courier; and (iii) on the Business Day actually received if deposited in the
U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.
15. Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and AGP and their respective successors
and permitted assigns, and the affiliates, controlling persons, officers and directors referred to in Section 11 hereof.
References to any of the parties hereto contained in this Agreement shall be deemed to include the successors and permitted assigns
of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or
their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. Neither the Company nor AGP may assign its rights or obligations under
this Agreement without the prior written consent of the other party.
16. Adjustments for
Stock Splits. The parties hereto acknowledge and agree that all share-related numbers contained in this Agreement shall be
adjusted to take into account any share consolidation, stock split, stock dividend, corporate domestication or similar event
effected with respect to the Placement Shares.
17. Entire Agreement;
Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued
pursuant hereto) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all
other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the
subject matter hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by
the Company and AGP. In the event that any one or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall
be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the
terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained
herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in
accordance with the intent of the parties hereto as reflected in this Agreement.
18. GOVERNING LAW AND
TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO EASTERN TIME. THE COMPANY AND AGP
EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
19. CONSENT TO
JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN
THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION
CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS
NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT
FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES
THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE
DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.
20. Use of
Information. AGP may not use any information gained in connection with this Agreement and the transactions contemplated by this
Agreement, including due diligence, to advise any party with respect to transactions not expressly approved by the Company.
21. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
transmission or email of a .pdf attachment.
22. Effect of
Headings. The section, Schedule and Exhibit headings herein are for convenience only and shall not affect the construction
hereof.
23. Permitted Free
Writing Prospectuses. The Company represents, warrants and agrees that, unless it obtains the prior consent of AGP (such consent
not to be unreasonably withheld, conditioned or delayed), and AGP represents, warrants and agrees that, unless it obtains the prior
consent of the Company (such consent not to be unreasonably withheld, conditioned or delayed), it has not made and will not make any
offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a
“free writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any such free writing
prospectus consented to by AGP or by the Company, as the case may be, is hereinafter referred to as a “Permitted Free
Writing Prospectus.” The Company represents and warrants that it has treated and agrees that it will treat each Permitted
Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply
with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission
where required, legending and record keeping. For the purposes of clarity, the parties hereto agree that all free writing
prospectuses, if any, listed in Exhibit 23 hereto are Permitted Free Writing Prospectuses.
24. Absence of
Fiduciary Relationship. The Company acknowledges and agrees that:
a. AGP is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each transaction
contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between the Company
or any of its respective affiliates, stockholders (or other equity holders), creditors or employees or any other party, on the one hand,
and AGP, on the other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement, irrespective
of whether or not AGP has advised or is advising the Company on other matters, and AGP has no obligation to the Company with respect to
the transactions contemplated by this Agreement except the obligations expressly set forth in this Agreement;
b.
it is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions
contemplated by this Agreement;
c.
AGP has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement
and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;
d.
it is aware that AGP and its affiliates are engaged in a broad range of transactions which may involve interests that differ from
those of the Company and AGP has no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary,
advisory or agency relationship or otherwise; and
e.
it waives, to the fullest extent permitted by law, any claims it may have against AGP for breach of fiduciary duty or alleged breach
of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that AGP shall not have any liability
(whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting
a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company, other than in respect of AGP’s
obligations under this Agreement and to keep information provided by the Company to AGP and its counsel confidential to the extent not
otherwise publicly-available.
25. Definitions. As
used in this Agreement, the following terms have the respective meanings set forth below:
“Applicable Time”
means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.
“Issuer Free Writing
Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement Shares
that (1) is required to be filed with the Commission by the Company, (2) is a “road show” that is a “written communication”
within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant
to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms,
in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the
Company’s records pursuant to Rule 433(g) under the Securities Act.
“Company’s
Knowledge” means the actual knowledge as of the Applicable Time of any of the Company’s Chief Executive Officer; its Chief
Operating Officer; its Chief Financial Officer, or Interim Chief Financial Officer, as the case may be; or its General Counsel, in each
case after reasonable inquiry.
“Rule 164,”
“Rule 172,” “Rule 173,” “Rule 405,” “Rule 415,” “Rule
424,” “Rule 424(b),” “Rule 430B,” and “Rule 433” refer to such rules
under the Securities Act.
“SEC Document(s)”
means (i) each and all reports, schedules, registrations, forms, statements, information and other documents filed with or furnished to
the Commission by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act during the two years prior to the date
hereof, including, without limitation, the current report on Form 8-K; (ii) the Registration Statement, as the same may be amended from
time to time, and the Prospectus; and (iii) all information contained in such filings and all documents and disclosures that have been
and heretofore shall be incorporated by reference therein, including the exhibits thereto.
All references in this Agreement
to financial statements and schedules and other information that is “contained,” “included” or “stated”
in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information that is incorporated by reference in the Registration Statement or the Prospectus,
as the case may be.
All references in this Agreement
to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy
filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer
Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to include the
copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements” to the Prospectus
shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection with any offering,
sale or private placement of any Placement Shares by AGP outside of the United States.
If the foregoing correctly
sets forth the understanding between the Company and AGP, please so indicate in the space provided below for that purpose, whereupon this
letter shall constitute a binding agreement between the Company and AGP.
| Very truly yours, |
|
| |
|
| REALPHA TECH CORP. |
|
| |
|
| By: |
/s/ Giri Devanur |
|
| Name: |
Giri Devanur |
|
| Title: |
Chief Executive Officer |
|
| |
|
| ACCEPTED as of the date first-above written: |
|
| |
|
| A.G.P./ALLIANCE GLOBAL PARTNERS |
|
| |
|
| By: |
/s/ Thomas J. Higgins |
|
| Name: |
Thomas J. Higgins |
|
| Title: |
Managing Director |
|
SCHEDULE 1
realpha tech corp.
FORM OF PLACEMENT
NOTICE
From: reAlpha Tech Corp.
To: A.G.P./Alliance Global Partners
Attention: Thomas J. Higgins
Subject: At the Market Issuance--Placement Notice
Ladies and Gentlemen:
Pursuant to the terms and
subject to the conditions contained in the At the Market Sales Agreement between reAlpha Tech Corp., a Delaware corporation (the “Company”),
and A.G.P./Alliance Global Partners (“AGP”), dated as of December 19, 2024, the Company hereby requests that AGP sell
up to [____] shares of the Company’s Common Stock, par value $0.001 per share, at a minimum market price of $[_____] per share,
during the time period beginning [month, day, time] and ending [month, day, time].
SCHEDULE 2
Compensation
The Company shall pay to AGP
in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to 3.0% of the aggregate gross proceeds from each
sale of Placement Shares.
SCHEDULE 3
Notice
Parties
| The Company |
|
| |
|
| Giri Devanur |
[***] |
| |
|
| Michael J. Logozzo |
[***] |
| |
|
| AGP |
|
| |
|
| Thomas J. Higgins |
[***] |
| |
|
| with a copy to [***] |
|
EXHIBIT 7(1)
Form
of Representation Date Certificate
___________,
20___
This Representation Date Certificate
(this “Certificate”) is executed and delivered in connection with Section 7(1) of the At the Market Sales Agreement
(the “Agreement”), dated as of December 19, 2024, and entered into between reAlpha Tech Corp. (the “Company”)
and A.G.P./Alliance Global Partners. All capitalized terms used but not defined herein shall have the meanings given to such terms in
the Agreement.
The Company hereby certifies
as follows:
1.
As of the date of this Certificate (i) the Registration Statement does not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading; (ii) neither
the Registration Statement nor the Prospectus contains any untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading; and (iii) no event has occurred as a result of which it is necessary to amend or supplement the Prospectus in order to make
the statements therein not untrue or misleading for this paragraph 1 to be true.
2.
Each of the representations and warranties of the Company contained in the Agreement were, when originally made, and are, as of
the date of this Certificate (unless such representation or warranty specifies a different date or time, then as of such date or time),
true and correct in all material respects.
3.
Except as waived by AGP in writing, each of the covenants required to be performed by the Company in the Agreement on or prior
to this Representation Date, has been duly, timely and fully performed in all material respects and each condition required to be complied
with by the Company on or prior to the date of this Representation Date, has been duly, timely and fully complied with in all material
respects.
4.
Subsequent to the date of the most recent financial statements in the Prospectus, and except as described in the Prospectus, including
Incorporated Documents, there has been no Material Adverse Effect.
5.
No stop order suspending the effectiveness of the Registration Statement or of any part thereof has been issued, and no proceedings
for that purpose have been instituted or are pending or threatened by any securities or other governmental authority (including, without
limitation, the Commission).
6.
No order suspending the effectiveness of the Registration Statement or the qualification or registration of the Placement Shares
under the securities or Blue Sky laws of any jurisdiction is in effect and no proceeding for such purpose is pending before, or threatened,
to the Company’s Knowledge or in writing by, any securities or other governmental authority (including, without limitation, the
Commission).
The undersigned has executed
this Representation Date Certificate as of the date first written above.
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EXHIBIT 23
Permitted
Issuer Free Writing Prospectuses
None.
Exhibit 5.1
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Mitchell
Silberberg & Knupp llp
A Law Partnership Including
Professional Corporations |
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December 19, 2024
reAlpha Tech Corp.
6515 Longshore Loop, Suite 100
Dublin, Ohio 43017
Re: reAlpha Tech Corp. – Registration
Statement on Form S-3 (File No. 333-283284)
Ladies and Gentlemen:
We have acted as counsel to
reAlpha Tech Corp., a Delaware corporation (the “Company”), in connection with its filing of (i) a Registration Statement
on Form S-3 (File No. 333-283284) (the “Registration Statement”) under the Securities Act of 1933, as amended (the
“Act”), with the Securities and Exchange Commission (the “Commission”), (ii) the base prospectus,
dated as of November 26, 2024 (the “Base Prospectus”), included in the Registration Statement and (iii) the prospectus
supplement, dated as of December 19, 2024 (together with the Base Prospectus, as supplemented from time to time by one or more prospectus
supplements, the “Prospectus”), filed with the Commission on December 19, 2024 by the Company, pursuant to Rule 424
promulgated under the Act.
The Prospectus relates to
the public offering of an aggregate of $4,750,000 of shares of common stock, par value $0.001 per share (the “Shares”).
The Shares are being sold pursuant to that certain At The Market Sales Agreement, dated as of December 19, 2024, by and between A.G.P./Alliance
Global Partners, as the sales agent, and the Company (the “Sales Agreement”). This opinion is being furnished in connection
with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining
to the contents of the Registration Statement or the Prospectus, other than as expressly stated herein with respect to the issuance of
the Shares.
We have examined such matters
of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates
and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters.
The opinions expressed herein are limited to the General Corporation Law of the State of Delaware. We express no opinion as to the effect
on the matters covered by this letter of the laws of any other jurisdiction. We express no opinion herein concerning any state securities
or blue sky laws.
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437
Madison Ave., 25th Floor, New York, New York 10022-7001
Phone: (212)
509-3900 Fax: (212) 509-7239 Website: www.msk.com |
December
19, 2024
Page 2
In our examination of the
foregoing documents, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals,
the conformity to original documents of all documents submitted to us as copies, the authenticity of the originals of such latter documents
and the legal competence of all signatories to such documents.
Based upon the foregoing,
and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the opinion that the Shares have
been duly authorized for issuance, and when issued against payment therefor pursuant to the terms of the Sales Agreement, will be validly
issued, fully paid and non-assessable.
Please note that we are opining
only as to the matters expressly set forth herein, and no opinion should be inferred as to any other matters. This opinion is based upon
currently existing statutes, rules, regulations and judicial decisions, as further limited above, and we disclaim any obligation to advise
you of any change in any of these sources of law or subsequent legal or factual developments which might affect any matters or opinions
set forth herein.
This opinion is rendered to
you in connection with the offering described above.
We hereby consent to the filing
of this opinion with the Commission as an exhibit to the Current Report on Form 8-K of the Company being filed on the date hereof and
to the reference to our firm in the Prospectus and the Registration Statement. In giving such consent, we do not hereby admit that we
are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.
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Very truly yours, |
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/s/ Mitchell Silberberg & Knupp LLP |
Grafico Azioni reAlpha Tech (NASDAQ:AIRE)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni reAlpha Tech (NASDAQ:AIRE)
Storico
Da Dic 2023 a Dic 2024
