Autozi terminates $24 million warrant agreement, issues new convertible note

Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) entered into a waiver agreement on September 19 that terminates existing investment arrangements and replaces them with a new convertible note, according to a company statement.

Under the waiver agreement with JAK Opportunities XII LLC, the investor agreed to terminate registration rights and relinquish future investment rights under six incremental warrants worth up to $24 million in exchange for a new senior unsecured convertible note.

The company issued the new convertible note with an original principal amount of $1,534,250, bearing no interest and maturing in one year. The arrangement also terminated an amended and restated registration rights agreement that required the company to file a registration statement with the Securities and Exchange Commission.

The original agreements date to February 19, when Autozi entered into an amended securities purchase agreement and registration rights agreement with the investor. Those agreements included issuing a senior unsecured convertible note and six incremental warrants that provided rights to purchase additional convertible notes with aggregate principal amounts up to $24 million.

The new note was issued in a private placement exempt from registration under the Securities Act of 1933, with the company relying on exemptions for transactions not involving a public offering. The Class A ordinary shares issuable upon conversion have not been registered under the Securities Act.

Autozi operates as an automotive products and services company in China, offering services through online and offline channels. The company filed the waiver agreement and convertible note details with the SEC on September 19.

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