Aerkomm Inc. announced that it has entered into an bond purchase agreement with World Praise Limited for a private placement of a convertible bond for gross proceeds of $10,000,000 on December 7, 2022. The Convertible Bond allows for loans to the Company up to an aggregate principal amount of $30,000,000 and acknowledges an aggregate principal amount of $23,173,200 in loans under the Convertible Bond outstanding as of December 7, 2022. The Convertible Bond carries an annual interest rate of four 4% which is due and payable, along with the then principal mount outstanding, on the Convertible Bond maturity date, December 7, 2024.

The Convertible Bond is pre-payable in whole or in part at any time without penalty, on five days' prior written notice to the investor. In the event of a change of control of the Company, the Convertible Bond shall become immediately payable in full. The Convertible Bond, along with accrued interest, is convertible in whole or in part by the investor at any time into shares of common stock of the Company at a conversion price of $6.00 per share.