stockholder approval as contemplated by Nasdaq Listing Rule 5635(d) with respect to the approval of the issuance of shares of Common Stock to Lind Global in connection with the repayment or conversion of any portion of the March 2024 Principal Increase, no later than October 31, 2024.
Summary of Lind Global Financing
On November 23, 2021, we entered into a Securities Purchase Agreement (the “2021 Lind Securities Purchase Agreement”) with Lind Global pursuant to which, among other things, on November 23, 2021 (the “Closing Date”), we issued and sold to Lind Global, in a private placement transaction, in exchange for the payment by Lind Global of $20.0 million, (i) a convertible promissory note (as amended from time to time, the “Convertible Note”) in an initial aggregate principal amount of $22.0 million (the “Principal Amount”), which bore no interest until the first anniversary of the issuance of the Convertible Note, then bore interest at a rate of 5% per annum and, as of October 1, 2023, bears interest at a rate of 12% per annum and will mature on November 23, 2024 (the “Maturity Date”), and (ii) 2,228 shares of Common Stock (originally 534,759 shares prior to the 1-for-30 reverse stock split effected on November 28, 2023 and the Reverse Stock Split).
Commencing August 23, 2022, and from time to time and before the Maturity Date, Lind Global has the option to convert any portion of the then-outstanding Principal Amount of the Convertible Note into shares of Common Stock at a price per share of $1,440.00 (originally $6.00 per share prior to the 1-for-30 reverse stock split effected on November 28, 2023 and the Reverse Stock Split), subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions (the “Conversion Price”). Commencing August 23, 2022, we have the right to prepay, in whole or in part (exercisable by us at any time or from time to time prior to the Maturity Date), up to the full remaining Principal Amount of the Convertible Note with no penalty; however, if we exercise such prepayment right, Lind Global will have the option to convert up to thirty-three and one-third percent (33 1/3%) of the amount that we elect to prepay at the Conversion Price. However, if we are not able to issue shares of Common Stock upon repayment or conversion of any portion of the March 2024 Principal Increase, then any portion of the March 2024 Principal Increase that cannot be converted shall remain outstanding until repaid in cash.
Subject to certain exceptions, we will be required to direct proceeds from any subsequent debt financings (including subordinated debt, convertible debt or mandatorily redeemable preferred stock but other than purchase money debt or capital lease obligations or other indebtedness incurred in the ordinary course of business) to repay the Convertible Note, unless waived by Lind Global in advance.
Beginning on November 23, 2022, the Convertible Note amortizes in twenty-four monthly installments equal to the quotient of (i) the then-outstanding Principal Amount of the Convertible Note, divided by (ii) the number of months remaining until the Maturity Date. All amortization payments shall be payable, at our sole option, in cash, shares of Common Stock or a combination of both. In addition, commencing on the last business day of the first month following November 23, 2022, we will pay, on a monthly basis, all interest that has accrued and remains unpaid on the then-outstanding Principal Amount of the Convertible Note. Any portion of an amortization payment or interest payment that is paid in shares of Common Stock was to be priced at 90% of the average of the five lowest daily volume weighted average prices of our Common Stock during the 20 trading days prior to the date of issuance of the shares. If, after the first amortization payment, we elect to make any amortization payments in cash, we must pay a 5% premium on each cash payment. In conjunction with the 2021 Lind Securities Purchase Agreement and the Convertible Note, on the Closing Date, we and Lind Global entered into a security agreement, which provides Lind Global with a first priority lien on our assets and properties. Through the Record Date, we have issued to Lind Global 2,229 shares of our Common Stock in connection with our entry into the 2021 Lind Securities Purchase Agreement and an aggregate of 3,798,477 shares of our Common Stock to Lind Global to satisfy interest and principal payments due under the Convertible Note.
On May 19, 2023, we entered into Amendment No. 3 to the Convertible Note (“Amendment No. 3”), pursuant to which we and Lind Global agreed, among other things, that: (A) effective as of May 19, 2023, the outstanding Principal Amount was increased by $1,250,000 to $17,750,000; (B) we would not be required to maintain any minimum balance of cash or cash equivalents with one or more financial institutions prior to September 15, 2023, and that we would thereafter be required to maintain an aggregate minimum balance equal to 50% of the then-outstanding principal amount under the Convertible Note or more in cash or cash equivalents with one or more financial institutions (the “Minimum Cash Condition”); (C) effective as of September 15,