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Transaction Overview

Addentax Group Corp. stated that it has entered an agreement with certain accredited investors for a private issuance of senior secured convertible notes for $15,000,000 on January 4, 2023. The company will issue two senior secured convertible notes with an original principal amount of $8,333,333.33 for total gross proceeds of $16,666,666.66.

The company issued convertible notes at a 10% initial discount. The notes bear a 5% annual interest rate, and the Company will be required to pay instalment amounts or, at its option, redeem such amounts under the Notes each month beginning on the last trading day of the calendar month in which the control account trigger date occurs, and thereafter, on the last trading day of each calendar month until the maturity date of July 4, 2024, at which time all outstanding amounts remaining, if any, will be due and payable in full. Beginning after the original date of issuance, the Convertible Notes are convertible into shares of Common Stock at an initial conversion price of $1.25 per share. The company also granted warrants to purchase up to 16,077,172 shares of common stock at $1.25 per share.

The Notes, Warrants, and shares issuable upon conversion of the Notes and exercise of the Warrants are offered and sold in accordance with exemptions from the Securities Act provided by Section 4(a)(2) and Rule 506 of Regulation D established thereunder.

Hexcellence Consulting is proud to announce that our client, Addentax Group Corp. (NASDAQ: ATXG) has successfully up-listed to Nasdaq Capital Market from OTCQB on August 30, 2022, securing $25 million IPO. Addentax Group Corp. is the 8th Chinese issuer listed on US Nasdaq in 2022. 

ATXG engage Hexcellence Consulting 4 years ago for current reporting services, since then we have work closely to prepare for this moment.

Two IPOs went public in the week of August 15, 2022 led by
GigaCloud Technology Inc. (NASDAQ: GCT), a wholesale marketplace operator for
furniture primarily manufacturing in Asia, raised $36 million at a $493 million
market cap and finished 292% above its IPO price.

Manufacturer of graphene products with development,
manufacturing and marketing in China and Hong Kong, Graphex Group Limited
(NASDAQ: GRFX), raised $12 million at a $79 million market cap and finished 0%
above its IPO price.

Three IPOs and four SPAC went public in the week of June 13, 2022 led by Lytus Technologies (NASDAQ: LYT) Indian provider of content streaming and telecasting services, raised $12 million at a $175 million market cap and finished 389% below its IPO price.

The one SPAC went public this past week are:

1.      Feutune Light Acquisition (no selected target industry)

Together, all the SPACs raised a total of $85 million.

One IPOs and one SPAC went public in the week of June 6, 2022 led by Phoenix Motor Inc (NASDAQ: PEV), a maker of electric vehicles and drive systems being spun out of SPI Energy, raised $16 million at a $155 million market cap and finished 57% below its IPO price.

The one SPAC went public this past week are:

1.      Acri Capital Acquisition (technology-enabled sectors in North America SPAC)

Together, all the SPACs raised a total of $75 million.