Fuse Group Holding Inc. (FUST)

[Big Brother]

These guys have a lot of cash on hand now.

Note 6 – Convertible Note

On December 19, 2016, the Company entered into a Convertible Promissory Note Purchase Agreement (the “Agreement”) with one of its major shareholders. Under the Agreement, the Company sold a Convertible Promissory Note to the lender with a principal amount of $6,869,818 and a 6% annual interest rate (the “Note”). The Note will mature on the date that is twenty-four months from the original issue date, and any outstanding principal and interest on the Note may be converted at any time prior to maturity at the lender’s option at a conversion price of $1.50 per share of the Company’s common stock. There is no beneficial conversion feature for the Note due to the conversion price being higher than the stock price at the time of the issuance of the Note.